Inc had on Sunday, October 25 won an interim award, which put on hold its partner Future Group's deal with Reliance Industries Ltd (RIL), whereby it had sold its retail business to RIL's retail arm, Reliance Retail Ventures Limited (RRVL), for Rs 24,713 crore.
"This was an emergency arbitration hearing, where they (Amazon) sought an interim stay on the merger so that the Future-Reliance deal doesn't close formally, while the matter is in global arbitration", a person aware of the development said. "We remain committed to an expeditious conclusion of the arbitration process".
"We welcome the award of the Emergency Arbitrator", Amazon said.
In a statement issued late Sunday (Oct 25) in Mumbai, the United States e-commerce giant said it got all the relief it sought, without providing specifics.
In a statement to Indian stock exchanges on Monday, Future Retail said it was not party to the agreement under which Amazon had invoked arbitration proceedings.
Future Retail has further said that in any enforcement proceedings, FRL will take appropriate steps to ensure that the proposed transaction proceeds unhindered without any delay.
In May, Amazon was considering increasing its stake in Future's retail unit to as much as 49 per cent, people familiar with the matter said at the time.
"RRVL has entered into the transaction for acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law", the Reliance Retail said in a statement.
Amazon.com secured relief in its dispute with Future Group after a court put a temporary hold on the debt-strapped Indian conglomerate's US$3.4 billion (S$4.6 billion) deal to sell assets to billionaire Mukesh Ambani's Reliance Industries. Reliance is already India's biggest brick-and-mortar retailer and has ambitious plans for the online segment that would see it take on Amazon in what is a rising market. Amazon also managed to acquire around a 3.58% stake in Future Group.
Gopal Subramanium, former Solicitor General of India, is one of the legal counsels for Amazon. The Future Group did not respond to queries from The Indian Express seeking comment. The deal would have been a bailout for Future, which faces another potential cash crunch as competition in the Indian retail space intensifies and the economy slows amid the coronavirus pandemic. Whereas, the 2019 agreement was between Amazon and Future Coupons.
It operates about 12,000 stores in almost 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel.
In the last couple of months, Reliance Retail has been attracting investments from several companies, some of which have previously invested in Reliance's digital venture Jio Platforms as well.