Amazon.com Inc. secured relief in its dispute with Future Group after a court put a temporary hold on the debt-strapped Indian conglomerate’s $3.4 billion deal to sell assets to billionaire Mukesh Ambani’s Reliance Industries Ltd.
Amazon, which acquired an indirect minority stake in the retail and fashion conglomerate last year, alleged that Future’s sale of its retail, wholesale, logistics and warehousing businesses to Reliance breached its pre-existing contract, which included a right of first offer and a non-compete clause.
The deal is now on hold until a final decision is given.
Amazon’s deal with Future Retail had given the American e-commerce giant the first right to refusal on purchase of more stakes in Future Retail, the Indian firm had said at the time.
Earlier local media reports have claimed that the agreement between Amazon and Future Retail also included a non-compete clause.
The two companies entered an additional deal early this year that granted Amazon “long-term” rights to sell Future Group’s products online.
