Amazon is exploring the purchase of a 26% stake in Reliance Retail, India’s biggest brick-and-mortar retailer.
Owned by Reliance Industries, Reliance Retail had an unsuccessful meeting with China’s Alibaba Group, which then sparked talks with Amazon, two senior industry executives told The Economic Times on Thursday, August 1. Talks with Alibaba tanked due to valuation disagreements.
“Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India Regulations 2015 and our agreements with the stock exchanges,” a Reliance spokesperson told the ET. Amazon declined to comment.
Walmart’s Flipkart prompted Amazon to engage with Reliance as the crusade for Indian market share continues. Seen as a powerful growth market, both companies are eager to expand their presence in India.
The Seattle-based eCommerce giant is looking for a stake below 26% so Reliance can sell on its Indian marketplace. Regulations in India bar sellers that are more than 26% owned by the platform, one of the executives told ET.
Having a piece in Reliance will give Amazon access to the Jio telecoms platform and its 10,600-plus stores across India.
While eCommerce accounts for just 3% of India’s total retail market, it’s expected to quickly grow due to inexpensive broadband and an uptick in smartphone use.
“If the deal goes through, Reliance Retail will become a
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