RETAIL SUCCESS. Amazon has won a key ruling in its fight to block Mukesh Ambani’s Reliance Industries from buying the retail assets of Future Group. The e-commerce titan has been trying to stop the sale of India’s second-largest big-box retailer, announced in August as part of a larger $3.4 billion transaction. The U.S. company argues the deal trampled over an earlier agreement with Future giving it the right to veto any transfer of assets.
India’s top court has barred any final ruling until it can hear Amazon’s objections, three sources told Reuters on Monday. The company founded by Jeff Bezos previously secured an emergency hold against the deal in a Singapore tribunal. The battle will test the enforceability of contracts and India’s willingness to uphold foreign arbitration rulings. But whatever concessions Amazon wins, the Reliance-Future deal looks inevitable. Foreign investment rules make it tricky to line up an alternative buyer to save the financially troubled target. (By Una Galani)
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