Mukesh Ambani-led Reliance Retail has extended the long-stop date for completion of its INR 24,713 Cr acquisition deal with Future Group by another six months, as the Kishore Biyani-led retail venture is stuck in a legal battle with Amazon over this acquisition. The deadline for the deal has been extended to September 30, 2021 from March 31, 2021.
“Reliance Retail Ventures Limited (RRVL) has in exercise of the right provided thereunder, extended the timeline for Long Stop Date from March 31, 2021 to September 30, 2021 which has been duly acknowledged by Reliance Retail and Fashion Lifestyle Limited, wholly owned subsidiary of RRVL,” Future Retail said, in the regulatory filings.
Reliance had agreed to buy Future Group’s retail, wholesale, logistics and warehousing divisions in August 2020. However, Amazon objected to the deal, claiming that it wasn’t informed about the deal. In October 2020, the US ecommerce company filed a case with the Singapore International Arbitration Centre (SIAC) and won a temporary injunction against the deal.
The ecommerce giant owns roughly 3% of Future Retail through its investment in Future Coupons. Amazon argued that the acquisition violated the non-compete clause in Amazon’s stakeholders agreement that has barred the Future Group from selling its business to certain companies including Reliance.
The case is also being heard in the Delhi high court and will be up for hearing in the Supreme Court soon.
Last month, the division bench of Justice JR Midha of the Delhi high court had passed a judgment that supported the temporary injunction given by the SIAC. The court had directed Future Group to approach authorities to recall all approvals granted to the deal with Reliance. It also imposed a cost of INR 20 Lakh on the company and its promoters including Biyani.
However, another division bench of Chief Justice DN Patel and Justice Jasmeet Singh of the Delhi high court stayed the order of March 18 to the next date of hearing.