Indian retailer Future's shares surge as regulator approves Amazon investment

Future Lifestyle Fashions

29/11/2019 05:05

BENGALURU, Nov 29 (Reuters) - Shares in Future Retail Ltd
 FRTL.NS  surged 13% on Friday, after India's antitrust body
approved a deal that would give Amazon.com Inc  AMZN.O  a
minority stake in one of the country's top retail groups.
    Future Retail in August announced the deal that would result
in the U.S. online retail giant acquiring a 3.58% stake in the
company, which runs over 1,500 stores in India and owns budget
department store chain Big Bazaar.  urn:newsml:reuters.com:*:nL4N25J149
    The companies had not disclosed the value of the deal, which
would help Amazon push deeper into India's booming retail
market.
    In a brief statement on Thursday, the Competition Commission
of India (CCI) said it had approved Amazon's purchase of a 49%
stake in Future Coupons Ltd, an entity that owns about 7.3% of
Future Retail, adding that it would soon provide a detailed
order.
    Reuters reported early this month that the CCI had sought
more information from Amazon about the planned transaction.
 urn:newsml:reuters.com:*:nL3N27H2BP
    Last year, Amazon and Indian private equity firm Samara
Capital announced a joint investment in an entity that would
give Amazon a stake in local supermarket chain More.
    The Seattle-headquartered firm also owns a stake in Indian
department store chain Shopper's Stop  SHOP.NS .
    Shares in Future Retail were higher by 13.8% by 10 a.m. in
Mumbai. Shares in other Future Group companies - Future
Enterprises Ltd  FURE.NS , Future Consumer Ltd  FTRE.NS  and
Future Lifestyle Fashions Ltd  FLFL.NS  - were higher by 2% to
16%.
    The Economic Times reported in August that the deal pegged
Future Retail's value at close to $6 billion, more than double
its then market capitalisation of $2.9 billion.

 (Reporting by Sachin Ravikumar; Editing by Subhranshu Sahu)
 ((saisachin.r@tr.com; +91 80 6749 7649; Twitter: @sachinr27;))