Amazon.com Inc has sent a legal notice to a promoter of Future Group over the retailer’s deal with Reliance Industries, ET Now reported on Wednesday, citing sources. In August, the Mukesh Ambani-led Reliance Industries said it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion, including debt.
Amazon’s investment in Future Group came with contractual rights, which includes a right of first refusal and a non-compete-like pact, a source told ET Now, adding that this was the main reason why the legal notice was sent to Future Coupons. Amazon, in its legal notice, cited a contract arrangement that included “a restricted list” of companies Future was not supposed to enter deals with, according to the report.
Amazon did not immediately respond to a Reuters request for comment. Amazon last year had acquired a 49 per cent stake in Future Coupons, which owns a 7.3 per cent interest in the retail group that operates more than 1,500 stores in India, including grocery chain Big Bazaar.