Future Group’s Shares rallied up to 20% after Suspension of Amazon Deal
Stocks of Future Group’s listed companies rallied up by 20% after the CCI (Competition Commission of India) suspended the 2019 deal of Amazon with Future Retail. Along with the suspension of the deal, Amazon also got charged with a Rs. 200 crore penalty for certain contraventions.
In its order, the commission mentioned the necessity of examining the combination, taking into consideration the popularity of both platforms in the online market. Amazon acquired 49 percent stakes of Future Coupons in 2019 for almost Rs. 1,500 crore. The issue started when the Future Group struck a $3.4 billion asset sale deal with Reliance Industries (RIL)in August 2020.