Amazon has considered investing in Reliance Retail Ventures

Started by Kalyan, Sep 16, 2020, 12:51 PM

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Kalyan

Amazon has considered investing in Reliance Retail Ventures

Mukesh Ambani-led Indian conglomerate Reliance Industries is looking to sell a roughly $20 billion stake in its retail arm to Amazon, Bloomberg News reported on Thursday. The technology giant has considered investing in Reliance Retail Ventures and is willing to sell up to a 40% stake in retail unit, the report said.

Amazon has held discussions about investing in the conglomerate's Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating a potential transaction, a person with knowledge of the matter told the publication.

ET had earlier reported that Reliance Retail Reliance Industries is looking to raise Rs 60,000-63,000 crore by selling a 15% stake in Reliance Retail Ventures, the holding company of its retail businesses, to a clutch of private equity investors and sovereign wealth funds.

On Wednesday, US private equity major Silver Lake picked up 1.75% in Reliance Retail Ventures for Rs 7,500 crore, valuing the company at Rs 4.21 lakh crore.

"As a policy, we do not comment on media speculation and rumors," a Reliance spokesman said in an emailed response to the publication "Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations."

Interestingly, when Reliance Industries acquired the retail business of Future Group last month, the conglomerate had structured the deal in a way that Amazon doesn't become its shareholder. Amazon owns 49% stake in Future Coupons, which owns about 10% stake in Future Retail, that operates more than 1,000 stores under Big Bazaar, Fbb, Foodhall and Easyday Club brands.

The acquisition gives Reliance Retail sway over a network of nearly 1,800 stores and brings in Rs 26,000 crore in additional sales to create a Rs 1.89 lakh crore ($26 billion) retail empire spanning about 14,000 brick-and-mortar stores, making it seven times bigger in terms of revenues than its nearest rival Avenue Supermarts that runs D'Mart.

These developments come after Reliance's digital unit Jio Platforms racked up $20 billion from a clutch of investors including Facebook, Google and Intel among others, in less than three months.



courtesy: economic times

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