Amazon and Future Group Controversy
Code : MAA0228 |
Region : Asia |
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Introduction:During the year 2019, Amazon.com NV Investment Holdings LLC (Amazon), a 100% subsidiary of the US-based e-commerce giant Amazon Inc, and the Future Group India's promoting entity, Future Coupons Private Limited (FCL), entered into a shareholders and share subscription agreement under which Amazon would acquire stake in FCL sponsored group entities. As a part of the deal, Amazon acquired a stake of 49% in FCL for Rs. 14,000 million. The deal was a futures contract that would enable Amazon to convert the stake into equity holdings of the FCL sponsored entities starting from the 3rd year and go on till the 10th year from the date of the agreement. Also, as part of the agreement, FCL was not allowed to enter into any strategic partnerships with Amazon's competitors in India. Future Retail was a part of Future Group and FCL had a stake of 7% in it. Future Retail had been under pressure of a growing debt burden.. |
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