Future Group: Competition Commission of India (CCI) suspension of Amazon deal triggers stocks rally
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20 December 2021, Mumbai:
Shares of Future Group's listed companies rallied up to 20 per cent on the BSE in Monday's trade, in an otherwise weak market, after the Competition Commission of India (CCI) on Friday suspended Amazon's 2019 deal with Future Retail (FRL). The antitrust watchdog also imposed Rs 200 crore penalty on the e-commerce major for certain contraventions.
Among individual stocks, Future Retail (Rs 57.50) and Future Supply Chain Solutions (Rs 80.75), Future Lifestyle Fashions (Rs 59.20), Future Enterprises (Rs 11.61), and Future Consumer (Rs 8.19) rallied 20 per cent each on the BSE in the intra-day trade.
In comparison, the S&P BSE was down 1.5 per cent at 56,134 points at 09:28 AM. Despite today's surge, most of these stocks were down between 15 per cent and 35 per cent from their respective 52-week highs.
In its 57-page order, the competition watchdog said it considered it necessary to examine the combination afresh, given that the two players were known in the online marketplace and offline retailing and had contemplated strategic alignment between their businesses.
In August 2019, Amazon acquired 49 per cent stake in Future Coupons, the promoter entity of FRL, for around Rs 1,500 crore. One year later, in August 2020, Future Group struck a $3.4-billion asset-sale deal with Reliance Industries (RIL).
BUSINESS STANDARD (The news article has not been edited by DFU Publications staff)
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