Amazon expands its presence in India
Amazon.com Inc. is set to snag a 3.58% minority stake in Future Retail, India’s second-largest retail chain.
The online retailer is acquiring a 49% stake in Future Coupons, owned by India’s Future Retail
Stocks impacted: Amazon.com Inc. (AMZN), Future Retail Ltd. (FRETAIL)
The U.S. e-commerce giant has agreed to acquire a 49% stake in Future Coupons Ltd., which owns a 7.3% interest in Future Retail. The companies did not disclose the value of the deal but based on Future Retail’s current market cap, which is nearly $3 billion, the stake in the company would cost about $104 million. As part of the agreement, Amazon will have the right of first refusal to purchase more stake in Future Retail both directly as well as via entities. Amazon shares declined nearly 1% on Thursday, while Future Retail's stock declined 5% on the news as investors had expected the US company to purchase a 10% stake.
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