Future Group ‘violated contract’ by signing deal with Reliance, says Amazon
- Future Group entered a $3.4 billion deal with Mukesh Ambani's Reliance Industries Limited
- Amazon had agreed to buy 49% of one of Future's unlisted firms last year
- The e-commerce giant has 'initiated steps' to enforce their contractual rights
Amazon.com Inc., in an email, accused its Indian partner – Future Group – of breaking a contract by entering a $3.4 billion sale agreement with billionaire Mukesh Ambani’s Reliance Industries, news organisation Bloomberg reported.
This could result in a derailment of the country’s biggest deal, that was signed a few days ago, Bloomberg reported.
“We have initiated steps to enforce our contractual rights,” a spokesperson for Amazon was quoted by the news organisation as stating in an email. “As the matter is sub-judice, we can’t provide details.”
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Bloomberg said that Amazon had agreed to buy 49% of one of Future’s unlisted firms last year, including the right to purchase into flagship Future Retail after a period of between three and 10 years.
With the deal coming into the scenario, Amazon is “drawing the battle lines” with Ambani’s Reliance to gain the top position in India’s estimated $1 trillion retail market.
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