Shares of India’s Future Group have risen to suspend Amazon deal | Business and Economic News

The antitrust regulator in India has suspended Amazon’s deal with Future, allowing it to reach an agreement with competitor Reliance.

Shares of Indian Future Group companies have risen by about 20 per cent since the country’s anti-competitive agency Amazon.com Inc canceled its 2019 deal with the group, making it easier for Reliance Retail to buy its future retail business.

Shares rose on Monday, then a ruling by regulators on Friday that the U.S. e-commerce giant had removed the information two years ago required the approval of regulations in the Future Group to invest $ 200 million in India’s 2nd store.

Amazon has been around for months used successfully the terms of this deal, Blocking Futures Retail Assets to Block Attempts to Sell for $ 3.4 billion, to a unit of Reliance Industries Ltd, Amazon’s largest rival in India’s retail space.

The Indian Competition Commission (ICC) said it would give Amazon time to seek information again for approval, but a person with direct news on the subject told Reuters that Future would be unlikely to cooperate with Amazon if it tries to place an order. for anti-monopoly cleansing.

Amazon, Reliance and Future did not immediately respond to Reuters’ requests for comment on Monday. Amazon said Friday it was reviewing the order “and will decide on its next steps in due course.”

Amazon is likely to sue in the coming days, according to people familiar with the matter.

“Future investors now have the opportunity to boost morale. With the introduction of the CCI, Future’s agreement with Reliance means that it can move forward with fewer problems, albeit with some challenges ahead,” said Gaurav Garg, head of research at CapitalVia Global Research. .

Saloni Nangia, president of Technopa retail consulting, told Al Jazeera that the move is unlikely to affect the interest of foreign investors in India’s retail sector. “There is a great deal of interest in what will continue in the history of market consumption in India,” he said.

Future retail trade, future consumers, future businesses and the way of life of the future rose by almost 20 per cent.

Shares of Reliance Industries fell 2.7 percent as a result of broader market sales.

Futures Retail Shares rose after announcing a Reliance deal in August last year, but lost a third of its value. Challenges assembled by Amazon.