Shares in Future Group organizations bounced on Thursday, a day after an Indian court ended arbitration procedures between the aggregate and alienated accomplice Amazon.com Inc. A two-judge seat of the Delhi High Court on Wednesday concurred with Future Group that there was no lawful reason for the mediation between the different sides to proceed with given India’s antitrust organization had suspended a key 2019 arrangement utilized by Amazon to assert rights over Future. Future Enterprises, Future Consumer, Future Retail and Future Lifestyle Fashions rose as much as between 7.5% and 13.8% in a weak Mumbai market.
Future Group previously said if the Reliance asset sale deal fails, it will likely face liquidation as its retail businesses were hit hard during the pandemic.
The Delhi court’s decision is a setback for the U.S. e-commerce giant, which had for months used the terms of its $200 million investment in Future Group in 2019 to block the Kishore Biyani-owned company’s attempt to sell retail assets to Reliance Industries, until the antitrust agency’s suspension of the deal last December.
The court will reconvene on Feb. 1 to hear the case again. A source familiar with the case said Amazon was likely to legally challenge the decision.
Future Group, Amazon and Reliance did not immediately respond to Reuters requests for comment.
The dispute between Future Group, Amazon and Reliance is seen as a battle for dominance in the Indian retail market between Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani.
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