The deal was in works since the beginning of the year and recently in August Future group had announced that Amazon has agreed to pick up pick up 49% stake in Future Coupons, the promoter entity of Future Retail.
The deal thereafter went for The Competition Commission of India’s (CCI) approval, which has now been received.
Without getting into detailed structuring of the deal, it would be sufficient to note here that Amazon’s whole purpose of entering into partnership with Future group is to leverage latter’s physical network of retail presence across India in various shapes and formats especially Big Bazaar.
Amazon has been aggressively looking to ramp up it’s presence across India both through online and offline network. It had recently also acquired stakes in Shoppers Stop and Aditya Birla’s More.
Deal with Future Group now finally going through – it would be interesting to watch Amazon’s strategy around the same. Do refer a related inves4 blog post on the same published previously.