Add Amazon.com Inc. to the list of companies that have been outmanver by Mukesh Ambani’s Juggernaut. He not only jerked the US giant in the struggle to dominate the Indian retail sector, he now holds all the cards in the $ 3.4 billion Dogfight to buy local cash retailers Ambani Reliance Industries Ltd. At the end of February calmly began to hunt employees and took over renting hundreds of stores that had been run by retail of the future Ltd. And Future Lifestyle Fashions Ltd., even when Amazon angrily tries to block formal acquisitions through lawsuits and arbitration. India and Singapore. Coup without Ambani’s blood forced Amazon to seek the settlement of bitter disputes and investors and future lenders who were worried about stripping assets.
“We did not expect the Reliance Group to take such drastic action, even without discussing this issue with us,” Head of the Future Retail Financial Officer Chandra Prakash Toshniwal wrote in the Reliance’s SCO.ID retail letter. “Please confirm that there will be no reduction paid.”
Other letters, March 5 – Bloomberg has a copy of the two letters – sent with a future lifestyle disclosed “worries and shock” and request dependency not to take such actions “can be seen seriously by everyone. Current and fixed assets” from the company. The bank can cut the future credit path, paralyze what is left of a retailer who has been starving in cash, the letter said.
The future group of Kishore Biyani-led was caught in the upheaval between the two large companies after Amazon objected to the reliance August 2020 offer to buy retail stores and retail warehouses in the future for 247.1 billion rupees ($ 3.4 billion). The American e-commerce giant said the agreement violated the 2019 agreement with other future group companies because of flying retail in the future, which had missed debt obligations and faced the risk of bankruptcy.
The future retail said in the exchange of submission Wednesday night it had received a notification of cessation on the sub-lease for large 342 and and 493 small shops from the reliance group. These stores contributed 65% of income but at this time did not operate for stock reconciliation and inventory. Separately, the future lifestyle has received notification of cessation for 112 sub-rental properties of dependency entities that carry a similar proportion of income.
The future group runs the largest retail food chain in India before the attacking pandemic, making it aqueous target for two of the richest men in the world – Ambani and Amazon’s Jeff Bezos – because they are jostling to control the only billion-plus consumer market where foreign companies can compete.
Representatives for reliance, Amazon and future groups do not immediately respond to email requests that are looking for comments on the letters The fate of future group investors, including Blackstone Inc. and L Catterton, and lenders now associate as dependence, the future and the Amazon spurred the settlement outside the court on March 15, when they need to report progress to the Indian Supreme Court to India.
Tactical Reliance’s victory offered a “master key,” gave it the strongest position on the negotiating table, according to Nirmal Gangwal, founder of the Mumbai Financial Advisor Brescon & Allied Partners LLP Amazon is the latest player who witnesses how to rely on conglomerate muscles in and finally dominates almost every sector into – petrochemical, crude oil purification, consumer retail, telecommunications, digital services and, newer.
Tacit Takeover
Last week, Amazon tried to bury the law spit almost two years, five days after local media reported the takeover of Tacit Reliance’s Tacit by signing a new lease agreement with landlords who have a future store and send work for 30,000 workers from future groups Amazon’s distrust on the turn of the event came during the hearing of the court last week. American Gopal Subramanium e-tailer lawyer said the future group told them the agreement with dependence would take six months or more to close. “It was almost no 48 hours and people took over the shop,” he said.
But the litigation compiled hurts the future group. Two future companies owe 300 billion rupees in total debts, behind turning on cash and operation Dependence will respect the definitive agreements that they sign in the past, someone who is close to this development, which does not want to be identified as the problem is personal. It has also extended the period to close the transaction with six months until September 30.
Treading Carefully
Other people who are familiar with developments say the future groups tread carefully because they don’t want to disturb dependence now The cautious tone is measured, bordering despair, comes in letters sent by future companies “We always act with full transparency and consider reliance groups as partners,” said retail in the future in the letter, adding that it hopes to close the transaction immediately. “Therefore, we will request that you do not take any action against us.”