InvestorQ : What is the latest progress in the Future Retail and Reliance Retail merger deal?
Dawn Cherian made post

What is the latest progress in the Future Retail and Reliance Retail merger deal?

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Mitali Bhutta answered.
3 months ago
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Supreme Court has a put a stay on all proceedings related to the Reliance Retail / Future Retail merger deal. The Rs.24,731 crore merger deal had run into problems after Amazon had objected to the deal on the grounds of not giving them the first right of refusal, which was required as per the terms of the agreement between Future Coupons and Amazon. Then Amazon had approached the Singapore Arbitration Centre to get a stay.

Putting a stay on the case for a month, Justice N V Ramana also asked other regulatory authorities like the NCLT, CCI and SEBI to desist from passing any order on the merger deal for a period of 4 weeks. As of now, the Singapore International Arbitration Centre had reserved its judgment after listening to both sides. While Harish Salve represented the Future Group, Amazon was represented by Gopal Subramanium.

On August 6, the Supreme Court had given verdict that the order of the SIAC was perfectly valid and implementable in India if it was as per the agreement. The SIAC had also given a verdict in favour of Amazon and restrained the Rs.24,731 crore merger deal. Supreme Court has, however, only ruled on the validity of the SIAC order and has not gone into the merits of the case, which it will do only after the final verdict of the SIAC.

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