Comments
Shares of fast moving consumer goods company, Future Retail Ltd, rose as much as 4.7 per cent to Rs 454 as a media report said that Amazon.com Inc is likely to buy an at least 7-8 per cent stake in Future Retail Ltd through an investment arm.
The potential cash-and-stock deal, which is in its final stages, could be worth Rs 2,500 crore ($338 million) and is likely to be signed in the next two weeks. Earlier this year, media reports said Amazon was in talks to buy a 10 per cent stake in Future Retail, competing with tech giant Google and Alibaba-backed Paytm. Future Retail had denied the reports.
The potential deal will be next in a series of acquisitions by Amazon.com Inc in one of the fastest-growing markets in the face of competition from Walmart Inc's Flipkart. In September, Amazon, along with private equity firm Samara Capital, had bought Aditya Birla Group-owned 'More' retail chain for an enterprise value of Rs 4,200 crore ($568.03 million).
Amazon India and Future Retail did not immediately respond to requests seeking comment. Future Retail shares rose over 6 per cent on August 27 on reports that global tech giants Google and Amazon were in talks for a stake buy. The stock had fallen 17.4 per cent this year as of last close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.