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Amazon is in talks with india’s Reliance Retail stake sale: sources

NEW DELHI (Reuters) – Amazon.com Inc. (AMZN.(O) is in talks with Reliance Industries Ltd (RELI.NS), the retail unit to purchase one share of India’s biggest brick-and-mortar retailer, two sources with knowledge of the talks told Reuters on Friday.

FILE PHOTO: A woman walks past a poster of Reliance Industries installed outside the venue of the annual general shareholders ‘ meeting in Mumbai June 7, 2012. REUTERS/Vivek Prakash/File Photo

Amazon’s huge online presence and can help you when it comes to enhancing the Trust and confidence of the consumer and private label business. Most importantly, it is a potential partnership that will help the duo to the counter Walmart (WMT.(N), which last year agreed to invest $16 billion in India Flipkart, in their struggle for a greater share of India’s fast-growing e-commerce market.

At the end of December, after India changed rules governing foreign direct investment (FDI) in e-commerce in the creation of additional barriers for companies, such as Amazon and Flipkart, and the giving of companies such as Reliance have an edge.

Amazon made the proposal to the Trust for its co-operation, however, it was not clear whether a deal would be reached, said one of the sources.

The second source said Amazon was considered, and a proposal for the purchase of up to 26% stake in Reliance unit, at least since the beginning of February.

“For Amazon, it’s about the elimination of a major competitor, and to allow ourselves to grow,” said the second source, who added that the company will be providing, the help of the Trust, is estimated to be 40 brands and grocery products online.

For further details on the possible deal, first reported by India’s Economic Times newspaper on Thursday, but it was not immediately clear.

In the Amazon, and the Trust will not immediately respond to requests for comment on Friday. Amazon on Thursday declined to comment, while the Trust had said it would be a disclosure to the stock exchanges as and when required.

Trust and confidence in the potential to take advantage of Amazon’s global experience in technology, supply chain and logistics as it aims to connect the local grocery stores in the entire country in digital form via the Jio telecom’s network is the largest in India by its clients.

For Amazon, to pick up a stake in a Trust unit would be able to do that is to gain access to the Jio telecom is the platform and in the large retail footprint of more than 10,600 stores spread all over India. It can also be done by adding some more firepower to their work, and the family Ambani is being seen as a well-connected politicians.

Seattle-based Amazon is eager to get a bigger share of India’s e-commerce market, which Deloitte is expected to more than treble to us $84 billion between 2017 and 2021.

The trust had previously been in talks with china’s Alibaba (BABA).The sale of a stake in Reliance’s Retail, but a deal could not be concluded due to differences in valuation, according to a person familiar with the matter.

Reporting by Aditya Kalra; editing by Emelia Sithole-Matarise

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