Reliance Defiant Over $3.4B Future Group Deal Despite Amazon Arbitration Win
Reliance Retail asserts its $3.4 billion acquisition of Future Group remains fully valid under Indian law, pushing back against a temporary injunction from a Singapore arbitration court won by Amazon.
Reliance Retail insists its planned $3.4 billion acquisition of Future Group’s assets is fully enforceable under Indian law and vows to complete the transaction without delay. This strong stance comes in direct response to Amazon winning an emergency arbitration order from a Singapore court that temporarily halts the massive Indian retail deal for approximately 90 days.
Amazon argues that its earlier indirect purchase of a stake in Future Retail grants it the first right of refusal and triggers a non-compete clause, prompting the American e-commerce giant to block the sale. The legal clash highlights the intense battle among Amazon, Walmart’s Flipkart, and Reliance Industries to dominate India’s vast and lucrative retail market.
Future Group seeks the Reliance bailout to survive the severe financial losses caused by the pandemic, though it remains silent on the current arbitration dispute. While the Singapore tribunal hearings are set to begin later this year, it is currently unclear how enforceable this foreign injunction is within Indian borders.