Amazon to acquire 43% stake in Future Retail

Indian retail segment is set for a clash between US-major Amazon and Mukesh Ambani’s Reliance Retail with the latter acquiring 49 per cent stake in Kishore Biyani’s Coupons Ltd. The deal allows Amazon to acquire all or part of Biyani’s shareholding in Future Retail Limited three years from now.

“Amazon has agreed to make an equity investment in Future Coupons Limited for acquiring a 49 per cent stake comprising both, voting and non-voting shares,” Future Retail said in a statement to the stock exchanges.

As part of the agreement, Amazon has been granted a call option. This call option allows Amazon to acquire all or part of the Promoters’ shareholding in Future Retail Limited (Company), and is exercisable between the third to tenth years, in certain circumstances, subject to applicable law.