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Indian Retail Battle Heats Up: Amazon Plans $700 Million Investment In Kishore Biyani-Led Future Group
Swarajya Staff
Aug 27, 2018, 03:24 PM | Updated 03:24 PM IST
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The Indian unit of Amazon is said to have begun formal negotiations with Kishore Biyani led Future Group for a possible investment of $600-700 million in return for a 12 to 15 percent stake in the latter.
Business Standard reports that both companies have signed a term sheet, which although not binding indicates that the two sides have officially entered into a pact to take the talks forward. It is reported that the deal would possibly encompass cash and stocks and is said to have been in the works since January when the buzz of a possible Flipkart stake sale to Walmart began to gain traction.
An Amazon investment in Future Group’s brick and mortal retail venture would be in line with its expansion strategies which are predicated on an omnichannel approach with the company testing pilots of brick and mortar stores in Europe and America. An Amazon-Future Group tie up would also enable the former in complying with the foreign direct investment (FDI) rules in retail while aiding the latter in capitalizing on its investments in technology and business expansion.
It appears that the Amazon-Walmart rivalry will soon visit Indian shores as well with both players boosting their presence through partnerships with local majors. Earlier, it was also reported that the Chinese Alibaba group is was in talks with Reliance Retail to buy a 50 per cent stake in a $5 billion deal.
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