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Amazon approaches Singapore Arbitration Centre to halt Reliance-Future deal

Singapore Arbitration Centre

Amazon has approached the Singapore International Arbitration Centre (SIAC), claiming that Future Group breached the contract under which the US online giant took an indirect stake in their retail business and Reliance Industries‘ deal to acquire Future Group‘s retail assets should be called off.

SIAC, a non-profit body is an alternative method of dispute resolution arising from cross-border transactions involving foreign’ companies beyond the traditional forum of court.

Amazon has also sent a legal notice to Future Coupons, the promoter entity where it bought 49% stake, claiming that the contract stipulated that Future cannot sell any shares to Reliance or any other competitor and that Amazon had the right of first refusal.

The Seattle based retailer has raised objections to Future Coupons not seeking approval from it even when the US company had the first right for any stake sale. The agreement also had a clause restricting them from selling their shares to any third party or competitor without their consent. It also clearly mentioned Reliance.

Source: Sagar Malviya – The Economic Times