Another likely FDI in Reliance
According to reports, Amazon might join its global rivals Facebook and Google to invest in Reliance Retail, India. Reliance Retail is the largest retail chain in India, serving more than 3.5 million customers each week through its nearly 10000 physical stores in more than 6500 cities and towns in India. The report asserted that the American- e-commerce giant is in preliminary talks to acquire a 9.9% stake in Reliance Retail.
The reported talks about the collaboration came after Mukesh Ambani, the Chairman of Reliance Industries said several firms had expressed interest in backing the retail chain. Ambani’s other venture, Reliance Jio has secured over $20 billion by selling 33% stake to more than a dozen investors including corporate giants like Facebook, Google, Silver Lake, and General Atlantic. During Reliance Industries’ annual general meeting earlier this month, Ambani said the company will “induct global partners and investors in Reliance Retail in the next few quarters.” Furthermore, Morgan Stanley, which served as a financial advisor to Reliance Industries for Jio Platforms’ deals recently valued Reliance Retail at about $29 billion.
The battle to acquire Stake in Future Retail
According to local media reports, both Amazon and Reliance Retail have been locked in a battle to acquire a majority stake in Future Retail, India’s second-largest retail chain. Last year, Amazon invested more than $100 million to acquire a 40% stake in Future Coupons, a group entity owned by Future Retail. This investment gave Amazon a 3.58% stake in Future Retail and also granted it the rights of first refusal to purchase more stake in Future Retail both directly as well as via entities, according to terms the two companies disclosed in a regulatory filing. Amazon and Future Retail have also signed a ‘long-term business agreement as part of which Future Retail sells some goods online through Amazon India Marketplace.