Reliance Industries has denied that it was planning to sell a $20-billion stake in its retail business to US rival Amazon in a deal that could upend the country's hugely lucrative e-commerce sector. The denial came after a Bloomberg report on Thursday claimed that Reliance was offering up to 40 per cent stake in Reliance Retail to Amazon.
The report said that Amazon has held discussions about investing in the retail arm of RIL and has expressed interest in negotiating a potential transaction. If fructified, this deal would be the largest in India and also Amazon’s largest deal till date.
“In light of a high incidence of speculative media queries and incorrect and ex parte media articles relating to purported capital transactions into Reliance Industries or our group companies, we would like to reiterate that as a policy, we do not comment on media speculation and rumours and we cannot confirm or deny any transaction which may or may not be in the works. Our company evaluates various opportunities on an ongoing basis,” Reliance said in a filing with the Bombay Stock Exchange. “Vide this communication, we appeal to the media to carefully examine any such speculative information and safeguard themselves and their readers, many of whom are individual retail investors, from publishing/recycling unfounded and/or incorrect news.”
Earlier in July, RIL Chairman Mukesh Ambani had announced at the Annual General Meeting that global partners and investors will be brought into Reliance Retail in the next few quarters. He said that several strategic and financial investors have shown interest in Reliance Retail.
Reliance has been fighting Amazon and Walmart-backed Flipkart for a share of India's online market, establishing its digital platform JioMart in May.
After spending years battling local mom-and-pop shops for customers, the retail giants are now trying to work hand-in-hand with the smaller stores that dominate India's towns and hinterlands to bring them online.
Reliance last month announced its acquisition of the retail, wholesale and logistics businesses of India's Future Group, which owns some of the country's best-known supermarket brands, adding around 1,800 stores to its portfolio.
