Future Retail Sees Liquidation If Reliance Industries Deal Fails: Report

Future Retail will go into liquidation if its deal to sell assets to Reliance Industries fails, the group told a Singapore arbitrator while arguing against Amazon.com Inc’s bid to scupper the deal, a legal order seen by news agency Reuters showed.

Amazon on Sunday won an injunction from a Singapore arbitrator to halt Future Retail’s deal to sell assets to Reliance. Amazon alleged Future Retail had breached certain contract provisions it entered into last year in a separate deal with the US firm.

The dispute centres around Future Retail’s decision in August to sell its retail, wholesale, logistics and some other businesses to Reliance Industries for $3.38 billion, including debt.

Amazon argues that a 2019 deal it had with a Future unit had clauses saying the Indian group couldn’t sell its retail assets to anyone on a “restricted persons” list including any firms from Reliance Industries chief Mukesh Ambani’s group. The deal specified any disputes would be arbitrated under Singapore International Arbitration Centre rules.

Shares in Reliance Industries and Future Retail fell on Monday. Both companies reacted to the arbitrator’s decision by saying they want to complete the deal “without any delay”, setting the stage for a showdown between Reliance Industries and Amazon – each led by one of the world’s richest men.

A 130-page order by the arbitrator reveals how Jeff Bezos-led Amazon argued that Future breached agreements which barred it from selling retail assets to entities including Reliance, whose boss Mr Ambani is Asia’s richest man. It also shows the level of concern at Future if the deal breaks.

Future’s retail unit – which has more than 1,500 outlets – will need to pack up if the transaction with Reliance doesn’t go through, hitting the livelihoods of thousands of employees and workers at its vendor firms, the Indian group argued before the arbitrator, according to the order which is not public.

Comments

Post a Comment

Popular posts from this blog

Top features why a dedicated WordPress hosting is best for your website

Dedicated servers are often looked upon as over-expensive web hosting solutions. You may consider them an overkill for your business, but there is no denying the fact that they are the best hosting solution out there. Today, we will tell you some features of a dedicated WordPresshosting that makesit the best for your business. Reliability This is the key factor why most businesses choose a dedicated WordPress server hosting to host their website. A dedicated WordPress hosting server is administered and maintained by a team of professionals who provide online support and work towards optimising the performance of the server. Unlike shared and VPS hosting plans which give you access to limited resources, dedicated server hosting provides a good hosting support. This in turn increases the reliability. Scalability Every business aims to grow their customer base and increase revenues. However, with the limited resources provided by theshared hosting, it can be challenging to handle the high
Read more

Elon Musk's "Use Signal" Post Spurred Massive Rally For The Wrong One

A two-word app recommendation from Elon Musk has turned into a massive rally in the shares of a tiny medical device company in another case of mistaken identity. “Use Signal,” the Tesla Inc. chief executive officer wrote on Twitter on Jan. 7, apparently referring to the encrypted messaging service. By the end of the day, Signal Advance Inc. shares had surged more than sixfold. That was enough to push Signal Advance’s rally more than 5,100% in three trading days giving it a market valuation of $390 million. Despite reports about the confusion on Friday, the stock has continued to rally. Shares of the Rosharon, Texas-based company surged as much as 885% on Monday before paring the gains. “We strongly recommend people do their due diligence and always invest with care,” the company’s chief executive officer, Dr. Chris Hymel, said when reached by phone on Monday. Signal Advance doesn’t have an association with Musk or the Signal app, he said. Signal Advance hasn’t filed an annual report wi
Read more

RBI Policy: MPC may keep policy rate unchanged at 6%; owl may sound hawkish

N- Urjit Patel, Governor of the Reserve Bank of India (RBI), and his five colleagues on the Monetary Policy Committee will not find it too hard to keep the key policy interest rate unchanged at the upcoming policy review on February 7. The 2-day deliberations on February 6 and 7 by the MPC on the repo rate decision are expected to remain tilted towards a pause mode, keeping the near term outlook hawkish. However, they may raise rates later given the risks of higher inflation with fiscal slippages and higher food prices with the government planning to increase the Minimum Support Price (MSP). In the Budget last week, the government promised to ensure MSP of key crops at 1.5 times the cost of production. This could mean at least a 50-70-basis-points increase in the headline inflation number. While banks and bond markets have already signaled the end of the interest rate easing cycle, the MPC may keep the repo rate unchanged at 6 percent. Inflation risks Although, experts suggest the infl
Read more