Online retailer Amazon and Future Retail has entered the final stage of talks to sign a deal wherein the e-commerce giant will buy around 9.5 percent stake in the Kishore Biyani led firm, said sources.
A final shape to the agreement between the two parties is expected to take place within the next 10 days, however in case of last minute hurdles the deal could be delayed till January 2019.
According to a media report, the deal is initially estimated to be around Rs.2,000 crore executed under foreign portfolio investor (FPI).
The agreement could also include Amazon buying out Biyani and promoter group’s entire holding in future subject to applicable regulations in India.
As of September 2018, promoter and promoter group had 46.51 percent share of Future Retail Ltd., which operates hypermarket and supermarket under brands which include- Big Bazaar, Easyday, Foodhall, HyperCity, FBB, Heritage fresh, ezone and WH Smith.
It has presence in 250 cities across the country.
If the deal is finalized, this would be Amazon’s third investment in the Indian brick-and mortar retail ecosystem. It already has stake in Shoppers Stop and More.
The deal would also intensify competition further between Amazon and Walmart-backed Flipkart that are locked in battle for leadership in the Indian e-commerce market.