Sources told Reuters on Wednesday that India’s Future Group will challenge a New Delhi court order that has prevented the sale of its $3.4 billion (approximately 24.7 billion rupees) retail assets due to opposition from its business partner Amazon.
After Amazon expressed opposition to the transaction, the court suspended Mirae Group’s sale of a series of assets to rival Reliance Industries on Tuesday. This is a war between retail giants that may reshape the shopping industry.
The source said that an appeal against the order is scheduled to be filed in court later on Wednesday and will then be composed of two larger judges.
Future and Amazon did not immediately respond to requests for comment.
In early Wednesday trading, Future Retail shares fell 5%. Reliance Industries fell as much as 1.2%, but then recovered.
American online giant Amazon argued in the Delhi court that it violated certain pre-existing contracts by selling retail assets to Reliance in the future.
It requires the court to enforce the earlier order of the arbitrator, who shelved the “future trust” agreement. The court said on Tuesday that the arbitration order was mandatory and required all Indian authorities to maintain the status quo of the transaction, effectively shelving the transaction.
Thomson Reuters 2021 ©
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