India’s Future discloses new documents to bolster case against Amazon deal -Breaking
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© Reuters. FILEPHOTO: Shop carts are left at Big Bazaar in Mumbai, June 9, 2012. REUTERS/Vivekprakash (INDIA) – Tags : BUSINESS/File photoAditya Kalra & Abhirup Roy
NEW DELHI, (Reuters) – Independent directors from India’s Future Retail disclosed new documents to India’s Antitrust Watchdog in a letter. They are trying to strengthen their case against Amazon.com Inc. (NASDAQ:), as they attempt to revoke a 2019 agreement between the companies.
The 160-page Stock Exchange filing Sunday revealed that directors reviewed records regarding the 2019 deal among Future Coupons (a unit of Amazon) and the Competition Commission of India. These disclosures were made to support the argument of Amazon’s internal communications.
Amazon and CCI declined to comment on Sunday’s disclosure.
Amazon and Future Coupons’ $200 million deal has turned the dispute between these two companies into a fierce legal battle that may determine who will be India’s largest retailer over the next few years.
Amazon used the tie up to prevent Future from trying to sell its retail assets for $3.4billion to Reliance. This is what the Indian company hopes to use to stay afloat.
According to Sunday’s filing, Future directors stated to CCI that Amazon did not intend to invest in Future Coupons owing to Future Coupons’ “unique model of business and strong growth potential”, according to the letter.
An internal email sent by an Amazon India executive, entitled “Future Retail Limited Investment”, stated that the U.S. company was using an “”twin-entity investing’ structure to invest Future Retail because of Indian law restrictions.
Future’s independent directors said that the CCI had to cancel the investment approval given for Amazon.
They have filed the lawsuit as the latest in a growing legal fight.
Reuters exclusive reported in July that the CCI received a Future-related complaint. After the CCI compared Amazon’s legal disclosures at different forums, Amazon was accused of hiding facts and seeking approval for the 2019 deal.
Reuters reported that the company had told Reuters in the moment it was certain of addressing the concerns expressed by the watchdog.
India’s financial crime fighting agency also directed Future, India’s second-largest retail company, to produce documents related to Amazon’s 2019 deal. The order was part of an investigation into foreign investment laws. Reuters first reported.
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