The Competition Commission (CCI), an antitrust agency of India, last Friday approved the conglomerate Reliance Industries to acquire the retail assets of Future Group for US$3.4 billion (Rs 24,713 crore), which hindered Amazon.com’s efforts to block the transaction.
Competition Commission of India (CCI) Announce The details of the decision made in a tweet last Friday may be announced later.
Amazon has contacted CCI and market regulator SEBI, saying that the transaction would violate certain previous agreements reached with Future Group.
Last month, Amazon won an injunction from a Singaporean arbitrator to suspend the transaction and await arbitration.
Amazon, Future and Reliance did not immediately respond to requests for comment.
Although the transaction has not yet been approved by the stock exchange and market regulator SEBI, the three companies are now involved in legal proceedings in the Delhi High Court.
An antitrust lawyer said that CCI only focuses on competition issues related to the transaction and has nothing to do with other disputes between the parties.
The lawyer said: “It is not the (CCI) regulatory agency that approved the transaction.”
Amazon said it had a clause in its 2019 deal with Future Group subsidiaries that it could not sell retail assets to certain parties, including Reliance.
Future argues that it has reached a deal with Reliance because its retail business has been severely hit during the COVID-19 pandemic, so it is important to protect all stakeholders.
The dispute has caused Amazon not only to have a dispute with Future Retail, one of the country’s largest retailers, but also with Ambani’s Reliance Group.
© Thomson Reuters 2020
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