Reliance will have to stop Future Retail acquisition 😶

Reliance will have to stop Future Retail acquisition 😶

What happened — the Supreme Court ruled to block Reliance’s much celebrated $3.4 billion deal for Future Retail, favoring Amazon’s right to halt the acquisition in line with the Singapore Arbitration court’s rulings.

FYI — couple years ago, Amazon had invested into Future’s Coupons business, and had acquired first rights to invest into Future Retail going forward. Later in the year, Future started having cash-problems, and when RIL came knocking, Future without thinking much to look into its closet, signed the company away to Mota bhai. Now come the ghosts!

Going forward — cash-strapped Future is the real sufferer, who without Reliance’s support, could be on the hook for billions in salaries, bills, rent, and other costs. Meanwhile, Reliance’s aggressive footprint expansion to support its ecommerce dreams hangs from a cliff.

Bottomline — very likely Bezos and Ambani catch up at the country club to cut out a deal that either gets RIL to pay Amazon some, or a joint ownership structure. Money over ego bois!

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