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This article is more than 1 month old.

Future Group stocks soar 5-20% as CCI suspends Amazon-Future deal

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Shares of Future Retail, Future Enterprises, Future Lifestyle Fashions, Future Consumer, Future Supply Chain Solutions and Future Market Networks were 5-20 percent higher on BSE. Future Group stocks skyrocketed on Monday as the Competition Commission of India (CCI) has suspended Amazon's deal with Future Group. The fair trade regulator also imposed a Rs 202 crore penalty on Amazon.

Future Group stocks soar 5-20% as CCI suspends Amazon-Future deal
Shares of Future Group companies skyrocketed on Monday close on the heels of the Competition Commission of India (CCI) suspending ecommerce major Amazon's deal with the Future Group. The fair trade regulator also imposed a Rs 202 crore penalty on Amazon.
The suspension of the Future Group-Amazon deal comes as a big relief to Future Group companies which was evident from the stock reaction.
At 9:30 am, shares of Future Retail, Future Enterprises, Future Lifestyle Fashions, Future Consumer, Future Supply Chain Solutions and Future Market Networks were 5-20 percent higher on BSE.
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CCI was hearing a complaint by Future Coupon seeking revocation of its nod to Amazon's investment. As per the order, the penalty imposed on Amazon is for providing false information and suppressing material particulars.
CCI's fine break up to Amazon is Rs 2 crore for suppressing information and Rs 200 crore for the failure to notify combination in terms of the obligation.
"Amazon had suppressed the actual scope of the Combination and had made false and incorrect statements in relation to the BCAs, which are intertwined into the scope and purpose of the Combination." reads the order.
CCI has asked Amazon to again file a detailed Form 11 for the transaction and deemed that the current approval is no longer valid.
In 2019, Amazon had entered into a deal with Future Group. As part of that deal, Amazon had acquired a 49 percent stake in Future Coupons which is the promoter firm of Future Retail.
Future Coupons holds a near 10 percent stake in Future Retail, according to the latest shareholding pattern.
In August 2020, Reliance Industries' Reliance Retail Ventures had said that it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group. Following which Amazon objected to Future's deal with RIL, saying that it was a violation of a non-compete clause and a right-of-first-refusal pact it had signed with Future.
The decision by CCI is seen as a setback for Amazon.
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