Amazon in Talks to Buy 40% Stake in Reliance Retail for $20 Billion: Report

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Amazon in Talks to Buy 40% Stake in Reliance Retail for $20 Billion: Report
Having offered round 25% stake in Jio Platforms to main world tech corporations and enterprise capital corporations earlier this 12 months, Reliance Industries is now reportedly providing to promote a $20 billion stake in its retail enterprise to US e-commerce large, Amazon. That’s in keeping with sources quoted by Bloomberg Quint, which claims that the 2 corporations have held discussions a few doable mega-billion greenback deal that would see Amazon purchase as much as 40% stake in Reliance Retail Ventures Limited (RRVL).

If it does finally materialize, the deal would be the single largest funding by a overseas agency in India, surpassing the reported $16 billion that Walmart paid for a 77% stake in Flipkart in 2018. However, the report means that Amazon hasn’t but dedicated itself to the huge funding and the deal may nonetheless fall via on the final second.

While an Amazon rep declined to touch upon the matter, a Reliance spokesman issued the next assertion to the publication in response to its queries: “As a policy, we do not comment on media speculation and rumors. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations”.

Meanwhile, the information about Amazon’s doable mega funding comes only a day after US-based personal fairness agency, Silver Lake, introduced it can make investments $1 billion (~Rs. 7,500 crore) to select up a 1.75% stake in Reliance Retail. The funding valued the corporate at a pre-money fairness worth of Rs. 4.21 lakh crore and, got here merely a couple of weeks after it acquired Future Group’s retail, wholesale, logistics and warehousing enterprise for Rs. 24,713 crore.

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