Amazon in talks to buy 9.9% stake in Reliance retail arm: Reports

  • by Staff@ TSD Network
  • July 23, 2020

The world’s richest man, Jeff Bezos, and the world’s fifth-richest, Mukesh Ambani are believed to be in preliminary talks for a mega deal in India. Sources say initial talks are underway for Amazon to become a strategic investor in Ambani’s Reliance Retail, and buy a 9.9% stake.

ET Now sources today reported that is in talks with Reliance Industries to buy 9.9 stakes of its retail sector. According to the tweets of ET Now it is speculated that Amazon is looking for a strategic stake in JioMart.

Jiomart was launched by Reliance retail arm in the month of may to target the E-commerce sector. It will be posing serious competition for both Flipkart and Amazon.

Amazon has also launched a program during the time when India went into lockdown due to coronavirus pandemic. The aim of this program is to connect small locals shops online to its delivery system.

It has already been a fantastic year for Reliance raising a combined investment of $20 billion for its digital arm from both Google and Facebook.

Sources say, Amazon was first reluctant and refused to give a no-objection certificate for the Future-Reliance deal. A slugfest ensued. And now, if Amazon does decide to give a no-objection certificate, it in return wants something much bigger. And that something bigger could very well be a strategic investment in Reliance Retail.

But. And this is a big but. Amazon will need to be comforted that its interests will not be adversely impacted by the recent investments made by its global rivals Alphabet and Facebook in the Jio Platform. Facebook invested Rs 43,500 cr for a 9.99% stake whereas Google invested Rs 33,737 cr for a 7.7% stake. This was all part of the massive, jaw-dropping $20bn fundraise by Jio during Covid-19.

Mukesh Ambani could not have set a louder and bigger message that Reliance Retail will also see a lot of action like Jio. Speaking at the 43rd AGM of Reliance Industries, the 63-year-old tycoon said, “We’ve received strong interest from strategic and financial investors for Reliance Retail…We will induct global partners and investors in Reliance Retail in the next few quarters.”

Facebook Comments
Staff@ TSD Network

Our hard-working staff writing team | You can reach us at ''
  • facebook
  • twitter
  • linkedIn
  • instagram