The Supreme Court on Friday delivered its verdict in the Amazon-Future-Reliance case. Reliance and Future Retail Limited (FRL) have suffered a setback in the case. In a big win for Amazon, the SC said Reliance cannot go ahead with its $3.4 billion deal to buy Future Group's retail assets. The Supreme Court has said the decision of Singapore arbitrator to hold the sale of Future Retail is enforceable.
Amazon had opposed the deal between Reliance and Future Group in different courts. A bench of Justice RF Nariman had on July 29 reserved its judgment in the case of Future Retail Ltd and Reliance Retail after hearing the arguments of all the parties.
After this news, the shares of Reliance Industries (RIL) fell by 2% and traded at the level of 2089.35, down by 43.95 points (2.06 per cent). It opened at the level of 2125.20 in early trade. Whereas, in the previous session it closed at 2133.30. Presently the market capitalization of the company is Rs 1324531.55 Crore.
In the year 2019, Amazon paid $19.20 million for a 49% stake in the Gift Vouchers unit of the Future Group. In this case, Amazon says that the terms of this deal prevent Future Group from selling the business of Future Retail Limited to Reliance. The Supreme Court, in its interim order on February 22, had asked the National Company Law Tribunal (NCLT) not to pass a final order on the merger. Future Group had moved the tribunal for regulatory approvals for the Rs 24,713 crore deal with Reliance. At the same time, Amazon challenged the order of the Division Bench of Delhi High Court in the Supreme Court.
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