INTRO: Having sold around 25% stake in Jio Platforms to leading global tech companies and risk capital firms earlier this year, Reliance Industries is now reportedly offering to sell a $20 billion stake in its retail business to US e-commerce giant, Amazon. That’s consistent with sources quoted by Bloomberg Quint, which claims that the 2 companies have held discussions a few possible mega-billion dollar deal that would see Amazon take over to 40% stake in Reliance Retail Ventures Limited (RRVL).
If it does eventually materialize, the deal are going to be the only largest investment by a far off firm in India, surpassing the reported $16 billion that Walmart purchased a 77% stake in Flipkart in 2018. However, the report suggests that Amazon hasn’t yet committed itself to the huge investment and therefore the deal might still fall flat at the last moment.
While an Amazon rep declined to discuss the matter, a Reliance spokesman issued the subsequent statement to the publication in response to its queries: “As a policy, we don’t discuss media speculation and rumors. Our company evaluates various opportunities on an ongoing basis. we’ve made and can still make necessary disclosures in compliance with our obligations”.
Meanwhile, the news about Amazon’s possible mega investment comes just each day after US-based private equity firm, Silver Lake, announced it’ll invest $1 billion (~Rs. 7,500 crore) to select up a 1.75% stake in Reliance Retail. The investment valued the corporate at a pre-money equity value of Rs. 4.21 lakh crore and, came merely a couple of weeks after it acquired Future Group’s retail, wholesale, logistics and warehousing business for Rs. 24,713 crore.