Negotiations to resolve the dispute between Amazon.com Inc. and India’s Future Retail have failed as the U.S. group has demanded a return of at least $ 200 million invested in the Indian company, the two sources said.
Amazon has blocked for a month the retail assets of Future announced in 2020 for $ 3.4 billion in sales to its rival Reliance, citing several breaches of contracts. The future has denied any wrongdoing, and hopes for an out-of-court settlement have recently risen after Amazon and Future agreed to talks.
On Tuesday, the two sides told the Supreme Court of India, which is investigating the case, that the talks had fallen apart and that Amazon had taken out newspaper ads criticizing Reliance and Future.
Two sources close to the settlement told Reuters that Amazon representatives had told the Future that the dispute could end if the US company recovers at least $ 200 million invested in a Future unit in 2019 – a transaction in the midst of ongoing legal conflict.
The future, instead, offered a stake in an equivalent amount to one of the rest of the companies in its group, after Reliance took over most of its retail assets, saying it was financially overwhelmed. But Amazon did not accept that, sources said.
Future and Amazon did not respond to emails requesting comments.
One source said there were more factors at stake in the talks, but the demand for a return on Amazon’s investment was “minimal” that the US company wanted.
Repair talks began after the reliance of India’s largest retail stores shocked Amazon when it began taking over the main stores of Future Retail on February 25, when its staff suddenly appeared to take control of many of Future’s largest stores, as seen. ownership of the invoice.
Earlier on Tuesday, Amazon ran large ads in India’s major newspapers with the headline “PUBLIC NOTE” and accused Reliance and Future of taking “clandestine” actions.
Future, which has a $ 4 billion debt, said it faces insolvency if it fails to reach a deal to sell its retail assets to Reliance.