E-commerce major Amazon may buy 26 percent stake in the country's largest retailer Reliance Retail. This information was given by two senior officials in the industry. However, they made it clear that nothing has been finalized yet. Both the companies are just talking about it. Incidentally, Reliance has been in talks with China's Alibaba Group about selling a retail business stake. Although the deal was not agreed on the valuation, the deal could not be ascertained.
There were reports that Reliance is also negotiating with the Future Group in this regard. However, both the spokespersons representing Amazon and Reliance respectively refused to make any comment on the developments.
Our company is evaluating different occasions from time to time. We have always made necessary disclosures in compliance with the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation 2015. Keep on going forward - Reliance spokesperson
Amazon is increasingly cautious in this matter. Sources said that the company wants the deal to be according to the new rules of foreign direct investment (FDI) for e-commerce in February.
The US Seattle Company wants to buy less than 26 percent stake in Reliance Retail. By doing this, Reliance Retail will become a seller on Amazon's e-commerce platform. According to the new regulations of FDI, the share of platforms in the companies selling goods on the e-commerce platform cannot exceed 26 percent of the shareholding in food and grocery.
On buying more steak they will be declared a group company and the seller will not be able to sell the goods on the platform.
According to sources, the reason for the interest in Amazon's Reliance Retail is the lead position in the Retailer's Consumer Electronics and Mobile Phone Market. Plus, the vast network of grocery stores of Reliance Retail can help Amazon grow on his plan of food and grocery. Officials said Reliance Industries wants to deal with an international retailer or strategist investor to reduce their debt.
At the end of June quarter, there was a loan of 2.88 lakh crore on the company. Reliance Retail is a subsidiary of Reliance Industries Limited (RIL).
An official said, "Reliance is also showing interest (in the deal), provided that match valuation is made. Both companies believe that making competition is better than competing. ' However, another official said that there is no such discussion in both the companies.