Despite a sharp global correction,
the Future Group’s listed companies rallied 20% on the stock markets on Monday.

The group’s companies such as Future Retail, Future Supply Chain
Solutions Future Lifestyle, Future Enterprises and Future Consumers surged
around 20% on the Bombay Stock Exchange and National Stock Exchange during
Monday’s session.

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Group companies gained after the Competition Commission of India
(CCI) suspended Amazon Inc’s 2019 deal with the group. The CCI’s decision came
as a setback to the US e-commerce giant as it has successfully used the 2019
contract to block the Future Group’s attempts to sell retail assets for Rs
24,713 crore to Reliance Retail. Reliance is Amazon’s biggest competitor in the
Indian retail market.

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The suspension of the deal is an opportunity for the Future Group
to move ahead with its deal with Reliance Retail.

Amazon suppressed important information to gain regulatory
approval for its $200 million investment in the Future Group, said the CCI.

“Amazon had misled the commission to believe, through false
statements and material omissions, that the combination and its purpose were
the interest of Amazon in the business of FCPL,” the antitrust body said.

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The CCI has imposed a fine on Amazon and has directed it to submit
a detailed version of the application again within 60 days. A person with
direct knowledge of the matter told Reuters that the Future Group was unlikely
to cooperate with Amazon if it tried to reapply for antitrust clearance. People
familiar with the matter told the news agency that Amazon is expected to
challenge the decision in the coming days.

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According to several reports, the Future Group is likely to
approach the Supreme Court, the National Company Law Tribunal (NCLT), and the
Singapore International Arbitration Centre (SIAC) with the latest CCI decision.

In 2019, Amazon acquired 49% stake for Rs 1500 crore in
Future Coupons, the promoter company of Future Retail Limited. In August 2020,
Future Group signed a deal with Reliance Industries (RIL) to sell its retail
assets for $3.4 billion.