MUMBAI: Indian conglomerate Reliance has dismissed Amazon鈥檚 push to delay its acquisition of domestic retail giant Future Group, despite an arbitration panel suspending the deal following objections by the US online titan.
The row is the latest development in a prolonged battle for dominance in India between Reliance, owned by Asia鈥檚 richest man Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the world鈥檚 wealthiest person.
Amazon, which owned a stake in one of Future Group鈥檚 firms that reportedly included an option to buy into the flagship company, claims that the $3.4-billion Reliance deal, announced in August, amounted to a breach of contract.
After an arbitration panel ordered the deal to be put on hold following Amazon鈥檚 request, Reliance said late Sunday that it would nevertheless 鈥渆nforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.鈥�
Reliance鈥檚 retail subsidiary RRVL said in a statement that it had followed 鈥減roper legal advice鈥� before agreeing to buy Future Group, adding that the deal was 鈥渇ully enforceable under Indian Law.鈥�
Reliance, Amazon and Walmart-backed Flipkart have been locked in a frenzied contest for a share of India鈥檚 lucrative online market.
The acquisition of Future Group, which owns some of India鈥檚 best-known supermarket brands such as Big Bazaar, would strengthen Reliance鈥檚 presence in the hugely competitive e-commerce sector.
The arbitration panel has 90 days to give a final verdict on the Reliance-Future deal.