The Competition Commission of India (CCI) on Thursday approved Amazon's proposed deal to acquire 49 per cent stake in Future Coupons Ltd (FCL), a Future Retail promoter group company.
The proposed combination pertains to the acquisition by the Acquirer of approximately 49% of the voting and non-voting equity shares of the Target (“Proposed Combination”). The Proposed Combination consists of certain other constituent steps involving FCL, Future Corporate Resources Private Limited (“FCRPL”), and Future Retail Limited (“FRL”), the CCI statement said.
Amazon will take advantage of Future Group’s store chain network to expand its hyperlocal platform, and also sell Future Group’s FMCG and fashion private brands in Amazon India platform.
The Acquirer is globally engaged in the business of making investments in other companies. It is a direct subsidiary of Amazon.com, Inc. (“ACI”) and belongs to the Amazon group. ACI is the ultimate parent entity of the Amazon group.
FCRPL is engaged in business of management consultancy services and trading in goods and services and also has investments in various Future Group of companies. FCL is principally engaged in marketing and distribution of corporate gift cards, loyalty cards and reward cards to corporate customers.
FRL (and its subsidiaries) are active in the Indian retail market and currently operate multiple retail formats in hypermarkets, supermarkets and convenience stores under various brand names.