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Amazon demanded $40 million to forego its right of first refusal: Future Group

Kishore Biyani-led homegrown retailer claimed in a submission to the emergency arbitrator that Abhijeet Mazumdar, head of corporate development and private investments at Amazon made a verbal offer to Future Group promoter on behalf of the e-tailer

twitter-logoBusinessToday.In | February 15, 2021 | Updated 13:28 IST
Amazon demanded $40 million to forego its ‘right of first refusal’: Future Group 

Future Retail that has locked horns with Amazon over its deal with Mukesh Ambani-led RIL said that the US giant asked $40 million to forego its 'right of first refusal' to buy Future Group's assets in its retail unit. The company made the allegations in documents submitted with the Singapore International Arbitration Centre (SIAC).

Kishore Biyani-led homegrown retailer claimed in a submission to the emergency arbitrator that Abhijeet Mazumdar, head of corporate development and private investments at Amazon made a verbal offer to Future Group promoter on behalf of the e-tailer asking for $40 million compensation in exchange for Future Group and Reliance proceeding with the disputed transaction.

Future Group claimed that according to messages exchanged between Biyani and Global Senior VP and country head at Amazon India Amit Agarwal, Amazon was kept in the know about the progress of the deal between Reliance Industries and Future Group, as mentioned in a report in Times of India.

SIAC noted in its interim award against RIL-Future deal granted to Amazon, that despite the etailer seeking to invest more into Future, it was not apprised of the finer details between the homegrown companies.

Amazon and Future Group are currently in a bitter legal battle over the homegrown etailer's Rs 24,713 crore proposed deal with RIL. Future Group along with other retail chains announced the sale of its retail, logistics and warehousing assets to Reliance Retail. Meanwhile, in 2019 Amazon had bought a 49 per cent stake in Future Coupons with a right to buy into Future Retail in a period of 3-5 years. Amazon pled that the Reliance-Future deal must be cancelled as it had the right of first refusal.

Also read: Future deal dispute: Amazon should not be a perpetual objector, says NCLT

Also read: India among fastest growing markets; investments in local content to continue: Amazon Prime Video

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