Competition Commission of India (CCI) has approved Amazon’s proposed acquisition of minority stake in Future Group, paving the way for closer integration of one of country’s leading retail chain into the Amazon India online marketplace.
Amazon and Future Group are now rolling out a joint business plan that will help the Kishore Biyani owned retailer to achieve $1-billion (about Rs 7,000 crore) of incremental revenue by 2021, two senior industry executives said.
Amazon wants to expand its hyperlocal platform, Amazon Now, into newer cities in India riding on the Future Group’s store network and also sell Future Group’s FMCG and fashion private brands through its India e-commerce marketplace, the executives said. The two companies are also exploring possibilities which will allow Amazon Prime and Future Pay customers to avail of common benefits and privileges.
When contacted, a Future Group spokesperson confirmed the CCI clearance but declined to share further details. An email sent to Amazon India did not elicit any response till Thursday press time.
CCI had sought additional details from Amazon on the proposed deal after it sought the approval of the competition watchdog in October. In a statement, CCI said it has approved Amazon.com NV Investment Holdings LLC’s plans to acquire 49% of voting and non-voting equity shares in Future Coupons Limited.Source: Economic Times