Amazon Looking for more clarity on FDI norms, Keeping Future Group stake buy plan on hold

Amazon Looking for more clarity on FDI norms, Keeping Future Group stake buy plan on holdThe US e-commerce Giant Amazon(NASDAQ:AMZN) has decided to plan for buying  stake in Kishore Biyani’s Future Group, instead of the  new FDI policy implemented this month. The company now a days is analyzing the damage done by new FDI rules and will not go ahead with the plans until it gets more clarity to expand its offline presence, said sources close to the development. It is also reassessing plans to buy More retail after getting clarity on FDI norms.

Things were moving as planned and Amazon was to close the deal in the first quarter of 2019 but FDI came into effect and e-tailer has now to change its plan, sources said to a report. Amazon had kept aside $2 billion to invest in retail chains the report said.

In August last year, Amazon had signed a term sheet with the Future Group to buy a stake between 10 and 15 percent for up to $700 million. It was touted as a probable third investment for the e-tailer.

In October 2017, Jeff Bezos-led firm had bought 5 per cent stake in Shoppers Stop for $26.35 million. In September last year, Amazon along with PE firm Samara Capital signed a deal to acquire food and grocery retail chain More.

The e-tailer planned to have strong hold through the deal in omnichannel retailing as it would have given access to food and grocery market through the Big Bazaar and Nilgiris supermarket chains and other outlets.

In the recently implemented FDI policy for e-commerce, the Indian govt prohibited marketplaces from selling products through companies in which they own stakes. The policy asked Amazon and Walmart-owned Flipkart, to restructure their business model.

Comments

Post a Comment

Popular posts from this blog

N Chandrasekaran appointed chairman of Tata Sons

Image
The board of directors of Tata Sons, at its meeting has unanimously appointed N Chandrasekaran as executive chairman, Tata Sons. N Chandrasekaran shall take charge from February 21, 2017. The board of Tata Sons said, “Chandrasekaran has demonstrated exemplary leadership as the chief executive officer and managing director, Tata Consultancy Services. We believe he will now inspire the entire Tata group to realise its potential acting as leaders in their respective businesses, always in keeping with our value system and ethics and adhering with the practices of the Tata group which have stood it in good stead.” Chandrasekaran was the chief executive officer and managing director of Tata Consultancy Services since 2009. A Tata lifer, he had joined the company in 1987 and was appointed as a director on the board of Tata Sons on October 25, 2016.
Read more

Fake GST invoice scam; 215 people arrested, ₹700 cr recovered

Image
Fake GST invoice scam; 215 people arrested, ₹700 cr recovered:  The   Directorate General of GST Intelligence (DGGI)   has recovered more than ₹700 crore from the arrested 215 people and in the last two months. The individuals who have been arrested for   GST fake invoice frauds   and are fly-by-night operators who fraudulently avail, pass on and utilize input tax credit (ITC) in multi-layered scams. The GST intelligence authorities have also registered over 2,200 cases and have unearthed more than 6,600 fake   GSTIN   entities. “Out of the 215 arrests so far there are 71 masterminds, 81 proprietors, 36 director/managing directors, 15 partners, 3 CEOs, 6 chartered accountants and one each of company secretary, broker, and GST practitioner,” the statement said.   The recent usage of data analytics, data-sharing and AI along with BAFTA tools has helped the agency to detect fraudsters with precise inputs. The DGGI in its statement also said that the arrested include several managing dir
Read more

Visa buys NFT based CryptoPunk and paid $150,000 in Etherium

Image
Visa buys NFT based CryptoPunk and paid $150,000 in Etherium:  Leader in the digital payments   Visa   has purchased a digital CryptoPunk for $150,000, marking the company's first ever   NFT   purchase. The deal is clearly shows that, Visa is stepping into the world of NFTs with its purchase of   CryptoPunk 7610 .   Going forward, NFTs and Visa to align and integrate them in new brand strategy to gain a sizable market share. However, NFTs have often been compared to physical collectible items like rare trading cards and works of art.   The CryptoPunk 7610, which feBlatures a female punk with a mohawk and large green eyes. "We envision there could be a future where your crypto address becomes as important as your mailing address," Visa's Head of Crypto said.   An NFT - which stands for non-fungible token - is a unique digital asset designed to represent ownership of a virtual item. Unlike bitcoin and other cryptocurrencies, NFTs can’t be exchanged like-for-like with an
Read more