US-based e-commerce giant Amazon Inc is likely to buy an at least 7-8% stake in India’s Future Retail Ltd through an investment arm, reported CNBC-TV 18, citing sources privy to the development. With this, Amazon aims to strengthen its presence in the physical space and also to take on Walmart, said the report.
The potential cash-and-stock deal, which is in its final stages, could be worth $338 million or ₹2500 crores and is likely to be signed in the next two weeks.
Earlier in May this year, media reports suggested that Amazon was in talks to buy a 10 percent stake in Future Retail, competing with tech giant Google and Alibaba-backed Paytm. Future Retail had denied the reports.
The potential deal will be next in a series of acquisitions by Amazon.com Inc in one of the fastest-growing markets in the face of competition from Walmart Inc’s Flipkart.
In September, Amazon, along with private equity firm Samara Capital, bought Aditya Birla Group-owned ‘More’ retail chain for an enterprise value of 42 billion rupees ($568.03 million).