Reliance offers Amazon US$20 billion stake in retail arm

Reliance Offers Amazon $20 Billion Stake in Retail Arm: Report

On Thursday, shares of Reliance Industries Limited (RIL) rose over 8 percent to hit a new all-time high of Rs 2,344.95 after a Bloomberg report citing sources said that the company is offering to sell roughly a $20 billion stake in its retail business to Amazon.

Further, on Wednesday, a Bloomberg report said that KKR is in advanced talks to invest at least $1 billion in the retail business.

However, a source close to Reliance Retail said it was unlikely that Ambani would give such a large share to a single investor. Earlier this year, the Economic Times reported that Amazon was in talks to buy a 9.9% stake in Reliance Retail. The acquisition, according to Moody's, will strengthen the retail footprint of India's largest organised retailer. This is almost twice the market cap of India's second most valued firm Tata Consultancy Services (TCS), which is valued at $119 billion. RIL contributed 126 points to the Nifty rally of 171 points. Analysts say that nearly half of the gain in Nifty Index was contributed by RIL.

In a startling development, Reliance Retail has offered to sell their 35-40% stake to Amazon, for whooping $20 billion. This includes investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc.

Reliance Retail also announced its acquisition of rival Future Group's retail arm in August, for $3.38 billion, and on Wednesday announced a $1 billion investment from United States private equity firm Silver Lake Partners, which took a 1.75% equity stake.

Hamilton: Aston Martin F1 move for Vettel is ‘ideal’
In the end Vettel opted for a multi-year deal with Aston Martin , something Hamilton was pleased to see. Vettel said: "I'm extremely proud to say that I will become an Aston Martin driver in 2021".

Reliance had crossed Dollars 150 billion market capitalisation on June 19, 2020, meaning it has added around USD 60 billion in investor value in less than 60 market days.

"We would like to reiterate that as a policy, we do not comment on media speculation and rumours and we can not confirm or deny any transaction which may or may not be in the works".

"Our company evaluates various opportunities on an ongoing basis".

"Responding to an e-mail query, Amazon said: "...we do not comment on speculations of what we may or may not do in the future". "Reliance can benefit via an increase in its addressable user base for JioMart via access to existing 140 million active users of Amazon", said Credit Suisse. It could also add more firepower to Amazon's local lobbying efforts, as the Ambani family is well-connected. The deal would also trigger a three-way battle between Amazon-Reliance, Walmart-Flipkart and other players in the world's second most populous country where the Covid-19 pandemic has accelerated a shift in consumer behaviour from brick-and-mortar retail to e-commerce.

The Indian Express is now on Telegram.

Related News:

Most liked

Britain’s relationship with European Union in crisis as ministers reject Brussels demand
First of all, it should be noted that the government does not say that it is trying to denounce the entire withdrawal agreement. To ensure that, the British-EU divorce pact calls for Northern Ireland to continue to apply some EU rules.

Complete Edition coming to Switch this holiday
The World: The Game Complete Edition hits PlayStation 4, Xbox One, Nintendo Switch, Stadia, PC, and UPLAY+ this holiday season. Rediscover the beloved 2D arcade-style beat'em up inspired by the iconic comic book series and movie Scott Pilgrim vs.

Beijing blasts Australia's search of Chinese state media employees' homes
Another member of the chat group, Chinese academic, Chen Hong, said his Australian visa had been canceled on security grounds based on advice from ASIO.

Former NFL WR Josh Bellamy charged in massive COVID-19 relief scam
Bellamy, recovering from a shoulder injury, was released Tuesday from the Jets' physically unable to perform list. He then allegedly used the loan to buy more than $100,000 on luxury goods from Dior, Gucci and various jewelers.

Ontario reports 170 new coronavirus cases, 1 death; total at 43,855
The ministry also indicated there are now 35 active cases among long-term care residents and 35 active cases among staff. Eight health-care workers and staff in long-term care homes have died.

DHS downplayed Russia, White Supremacists threat: Whistle-blower
Murphy said he declined because it would be a violation of his duties not to do it. According to Murphy's account, the number should have been three.

Zverev rallies after early blip to reach last four
The German overcame the 27th-seeded Croatian 1-6, 7-6 (7/5), 7-6 (7/1), 6-3 in 3hr 25min inside Arthur Ashe Stadium. Osaka has has honored a different victim of race violence during each of her matches at the US Open .

Three dead as wildfire explodes in Northern California
The winds subsided Wednesday but the fire was only 24% contained and officials said the fire was still very risky . At a news conference Thursday, she said there have been fatalities but the exact number is not yet known.

New Florida jobless applications fell in the week ending September 5
On an unadjusted basis, which is more comparable, jobless claims ticked 20K higher to 857.14K from the prior week. All told, some 29.6 million Americans were relying on some form of unemployment insurance as of August 22.

Diana Rigg, Olenna Tyrell of Game of Thrones, passes away at 82
The character went down in GoT history after she admitted to poisoning disgusting King Joffrey just before being killed herself. Dame Diana was also nominated for nine primetime Emmy awards, winning for her role as Mrs Danvers in Rebecca in 1997.

Huge fire breaks out in Beirut's port a month after explosion disaster
The aid organization said its humanitarian operations risked serious disruption as a fire hit a warehouse where it keeps food aid. Meanwhile, Lebanese MP Rola Tabsh has called for an global investigation into the Beirut port fires "now and not tomorrow".

Chinese and Indian soldiers exchange fire for first time in 45 years
And when dissuaded by (Indian troops), PLA troops fired a few rounds in the air in an attempt to intimidate (Indian) troops . It is to be noted that Indian Army had succeeded in capturing Rechin La and Rezang La on August 29-30.

Vaccine cd still be out by year's end - AstraZeneca - English
Gabriella Garcia, a neurologist at Yale New Haven Hospital, tells the Times transverse myelitis is often treatable with steroids. Shares in AstraZeneca fell on Wednesday after the trial halt raised doubts about the timeline for the vaccine's rollout.

Nikhil Dwivedi gets trolled for extending support to Rhea Chakraborty
His death sparked a political row and led to the arrest of another actor and Sushant's girlfriend Rhea Chakraborty . The NCB had said that the actress has revealed that she used to procure drugs for Sushant for consumption goal .

ByteDance may miss USA deadline for TikTok deal
Even if there isn't a full sale, the outcome would likely involve some sort of restructuring of TikTok, one of the people said. However, those discussions have intensified in recent times after the Chinese government got involved in the TikTok-US saga.