As per a leading business channels report, Amazon, US based online-retailing company, is likely to take over up to 8% stake in Kishore Biyani led Future Retail. The deal is likely to close in next two weeks time.
The two companies to enter a deal are finalizing the agreement that could include clauses in relation to exclusivity. The deal is expected to include a mix of both cash and stock. And will be signed by Amazon India office representatives. Furthermore, valuation of the buy-out will be decided upon signing of the deal.
Subsequent to the deal, it is expected that Amazon may come up with a microsite for Future Retail brands. Also, stores of Future Retail post the deal may include Amazon experience centres.
Prior to this deal, Amazon and India-based PE firm Samara Capital had acquired More, food and grocery chain of Aditya Birla Group, for a financial consideration of Rs. 4200 crore. Also, earlier this year, the investment arm of Amazon, Amazon NV Holdings picked up 5% stake in Shoppers Stop for as much as Rs. 180 crore.
Recently, Jeff Bezos, Amazon's CEO said the company will up its investment in India by an additional $3 billion, strengthening its India commitment to over $5 billion.