$ 3.4 billion Reliance-Future settlement approved by CCI
India’s Antitrust Body (ITC) Competition Commission on Friday approved conglomerate Reliance Industries’ deal for $ 3.4 billion (or Rs. 24,713 crore) to buy Future Group’s retail assets, thwarting Amazon’s efforts. .com to block the deal.
The Competition Commission of India (ITC) Announced his decision in a tweet on Friday, with details likely to be made public later.
Amazon had approached the CCI and market regulator SEBI claiming that the deal would violate some pre-existing agreements it had with Future group.
Last month, Amazon won a court order from a Singaporean arbitrator to stop the pending arbitration agreement.
Amazon, future and Dependence did not immediately respond to a request for comment.
While the deal has yet to receive approval from the stock exchanges and market regulator SEBI, the three companies are now embroiled in a legal battle in the Delhi High Court over the transaction.
An antitrust lawyer said the ICC only looks at competition issues around a deal and is not concerned with other disputes between the parties.
“It is not (CCI) a regulator that approves the transaction as such,” said the lawyer.
Amazon says its 2019 deal with a Future Group subsidiary included clauses saying it couldn’t sell its retail assets to certain parties, including Reliance.
Future has argued that it entered into a deal with Reliance because its retail business was severely affected during the COVID-19 pandemic and it was essential to protect all its stakeholders.
The dispute has put Amazon at odds with not only Future Retail, one of the nation’s top retailers, but also Ambani’s Reliance Group, which is rapidly expanding its e-commerce business and threatens the dominance of the American giant.