Reliance Retail intends to complete Future Group deal despite Amazon’s victory

Reliance Retail, in a statement released late Sunday night, said that its deal to acquire Future Group for US$3.4 billion “is fully enforceable under Indian Law.”

The firm, led by Indian billionaire Mukesh Ambani, further added, “Reliance Retail Ventures Ltd. (RRVL) intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.”

This response comes shortly after Amazon won an interim victory in the Singapore arbitration court, which ordered a temporary stop to the proposed sale between the two Indian retail companies.

The order will prevent Future Group from selling its assets to Reliance Retail for about 90 days, according to a TechCrunch report citing a source.

Earlier this month, Amazon sent a legal notice to Future Group for allegedly breaching its non-compete contract over the latter’s deal with Reliance Industries Limited. Hours later, the US ecommerce titan took the matter further by approaching the Singapore International Arbitration Centre to try to call off the deal between the two Indian companies.

The point of contention: Amazon didn’t get the first right of refusal to buy more stake in Future Group as per their deal. It currently holds a 3.58% stake in Future Retail, the retail arm of Future Group.

See also: Amazon vs. Reliance Retail: First shots fired in the Indian ecommerce battle

Amazon in a statement said that the company was grateful for the order which grants all the reliefs that were sought. “We remain committed to an expeditious conclusion of the arbitration process,” it added.

Reliance Retail’s acquisition of Future Group is widely seen as a significant move to expand its retail business and take on leading ecommerce players such as Amazon and Walmart’s Flipkart through its JioMart platform.

Last week, Flipkart bolstered its efforts in the ecommerce battle by investing over US$200 million to acquire a 7.8% stake in Aditya Birla Fashion and Retail Ltd. – a fashion and lifestyle company in India with over 3,000 stores.