HIGHLIGHTS:
- The Supreme Court held that the Singapore Arbitrator’s decision to stop the sale of Future Retail can be implemented.
- The reliance share was decreased by 2% on BSE and reliance got 1.3 lakh crore to lose.
The Supreme Court has given a big blow to Mukesh Ambani. The Supreme Court today ruled in favor of Amazon in the Future-Reliance retail deal case.
Reliance’s market cap was reduced by Rs 1.3 lakh crore
The Supreme Court held that the Singapore Arbitrator’s decision to stop the sale of Future Retail can be implemented. Future Retail’s Rs 24,713 crore deal is able to apply the arbitrator rule.
After the session the reliance share was decreased by 2% on BSE and reliance got 1.3 lakh crore to lose and, the market price reached 13.47 lakh crore, which was Rs 14.77 lakh crore when the market was closed.
In February this year, Amazon recorded a request against Future Group in the High Court. It tested the offer of Future Group’s retail assets for Reliance Retail.
For what reason did Amazon appeal?
The Deal was endorsed among Reliance and Future Retail in August 2020. Amazon arrived at the Arbitration Court of Singapore against this deal. On 25 October 2020, the court of Singapore likewise stayed this deal. The Singapore Court has additionally not given any last decision.
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The court there can give a decision on this soon, on the grounds that in the wake of stayed the deal in October, the court had said that it would give a decision in 90 days. Since this stay was forced by the Singapore Court, reliance and Future not will undoubtedly agree with this request.
This was the reason why Amazon needed to speak to the Delhi High Court to execute the request for the Singapore court.
The Deal was endorsed by CCI on 20 November 2020.
The Reliance Retail and Future group deal were endorsed by the Competition Commission of India (CCI) on 20 November 2020. It was educated through CCI that the commission has endorsed the acquisition of Retail, Wholesale and Logistics, and Warehousing business of Future Group.
