Future Retail Shares, Bonds Surge After Amazon Deal on Hold
Future Retail’s shares rose as much as 20% to Rs 57.5 in early trade in Mumbai.
(Bloomberg) -- Future Retail Ltd.’s shares and dollar bonds jumped Monday after an order by India’s antitrust body may make it harder for Amazon.com Inc. to block a bid for the Indian department store chain by rival Reliance Industries Ltd.
Future’s shares rose by the maximum permissible 20% to 57.5 rupees in Mumbai on Monday, the biggest surge since August last year. Its 2025 dollar bonds advanced 4.2 cents on the dollar to 57.9 cents, the biggest daily gain since February, Bloomberg-compiled data show.
The order by Competition Commission of India strikes at the heart of the U.S. giant’s efforts to scuttle billionaire Mukesh Ambani’s plan to buy Future Retail and cement his firm’s position as India’s largest retail network.
Amazon had been arguing that Ambani’s move contravenes the 2019 agreement between the U.S. retailer and Future group. The Indian agency’s decision -- which can be challenged in court -- nullifies that stance and could help clear the path for Reliance.
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