Amazon to buy stakes in India’s Reliance Retail to counter Walmart-Flipkart


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Amazon to buy stakes in India’s Reliance Retail to counter Walmart-Flipkart

Seattle-based retailing industry kingpin, billionaire Jeff Bezos’ Amazon.com Inc., has been in an advanced-stage talk with India’s Reliance Industries Ltd.’s retail unit aimed at taking a piece of India’s largest brick-and-mortar retailer, two sources familiar with the matter had unveiled on Friday, the 2nd of August 2019.

In effect, an upscaled online presence of Amazon.com Inc. would likely to boost up Reliance’s private label alongside consumer businesses. Besides, a potential merger between Amazon.com Inc. alongside Mukesh Ambani’s Reliance, is expected to counter the Seattle-based tech conglomerate’s arch-rival, Walmart Inc., which invested about $16 billion last year on India’s Flipkart to grasp a bigger bite of India’s faster-growing e-commerce industry.

Nonetheless, one of the two sources briefed directly about the subject-matter had been quoted saying on Friday (August 1st) that Amazon had already sent a formal proposal to India’s richest man, Mukesh Ambani’s Reliance Industries Ltd., however, the source also added that it had not been cleared yet whether a deal could come into light in a near-term outlook.

Adding that the US-based tech conglomerate had been contemplating a proposal to purchase up to 26 percent stake in Reliance Unit since earlier this year, a source said in terms of anonymity on Friday (August 2nd), “For Amazon, it is about neutralizing a major rival and allowing itself to grow. ”