Amazon to Acquire 10 Per Cent Stake in Future Retail
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.