Reliance abandons plans to buy Indian retailer amid challenges | Business and Economy News

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Reliance’s decision to back out comes after almost two years of litigation as Amazon contested the takeover.

By Bloomberg

Billionaire Mukesh Ambani abandoned a plan to buy a teetering Indian retailer amid protracted legal challenges from Amazon.com Inc., potentially ending one episode of the broader clash between the two titans to control the country’s billion-people-plus market.

In a filing Saturday, Reliance Industries Ltd. said its proposal to acquire certain assets of Mumbai-based Future Group — which ran the nation’s biggest retail grocery chain before the pandemic struck — “cannot be implemented” after its flagship firm Future Retail Ltd. failed to win the approval of its secured creditors for the deal. Reliance didn’t elaborate.

Future Retail’s shares slipped as much as 5.1% in Mumbai on Monday, extending this year’s plunge to 45%. Reliance fell as much as 1.8%, compared to a…

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