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Posted on 22-01-2021 by Admin
SEBI has approved the purchase of Future Group s retail, wholesale, logistics and warehousing business by Reliance Industries for ₹ 24,800 crore ($ 3.4 billion). However, SEBI said that Future Group should share litigation information with Amazon. Amazon said the deal was a violation of its 2019 contract with the promoters of Future Group.
American e-commerce company Amazon is continuously opposing the Reliance-Future deal. In response to the deal, Amazon wrote several letters to the Indian SEBI, stock exchanges and other regulatory agencies. In the letters, Amazon requested not to allow the deal. Bypassing Amazon s request, the Securities and Exchange Board of India has conditionally approved the deal with certain conditions.
The Competition Commission of India (CCI) has already approved the deal. Now after the approval of SEBI, approval of NCLT is yet to be received. SEBI has also issued an order to share the details of the deal with the shareholders of Future. SEBI s permission on this deal of Future-Reliance Group will depend on the outcome of the pending cases in the court. The Future Company Board approved the proposal for a Rs 24,713 crore deal to sell the property to Reliance Retail,
Future Retail shares rose more than 4% after Sebi approved the deal between Reliance Industries and Future Group. At the same time, Reliance Industries shares gained 3%. Significantly, BSE has imposed an upper circuit limit of 5% on the shares of Future Group.