Ama­zon to Ac­quire 10 Per Cent Stake in Fu­ture Re­tail

Apparel - - Market Watch -

Amer­i­can e-com­merce gi­ant Ama­zon plans to ac­quire a 10 per cent stake in Fu­ture Re­tail. Ama­zon is ex­pected to pick up these shares—through the for­eign port­fo­lio in­vestors route—at a hefty premium to the pre­vail­ing share price for gain­ing busi­ness ex­clu­siv­ity and fu­ture share­hold­ing rights. Fu­ture Re­tail shares ended 14 per cent higher at R494 apiece af­ter tele­vi­sion channels re­ported that Ama­zon was on track to buy a seven to eight per cent stake in the In­dian com­pany.

Ama­zon’s in­vest­ment could evolve along­side reg­u­la­tory and busi­ness de­vel­op­ments. The Seat­tle-head­quar­tered on­line re­tail­ing be­he­moth plans to adopt the Omni-chan­nel ap­proach, though it is ex­pected to face stiff re­sis­tance from Wal­mart, which ac­quired lo­cal e-com­merce leader Flip­kart, and Chi­nese in­ter­net gi­ant Alibaba which has in­vest­ments in Paytm Mall and e-gro­cer Big­Bas­ket.

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