India’s renowned businessman Mukesh Ambani’s Reliance Offers 20$ Billion Stake to sell roughly in its retail business to Amazon.
Amazon held discussions investing in the conglomerate’s Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating the potential transaction.
Mumbai-base Reliance Industries is willing to sell a 40% stake in the subsidiary to Amazon.
If productive, a deal would not only build a retail titan in India but would turn Jeff Bezos and Asia’s richest man from rivals into allies in one of the fastest-growing consumer markets in the world.
At $20 billion, the deal is going to be the biggest ever in India, as well as for Amazon.
Shares of Reliance Industries has surged to a record.
The stock advanced 7.1% in Mumbai, pushing the company’s market valuation past $200 billion.
It was the day’s top gainer on benchmark BSE Sensex, which rose 1.7% on Thursday.
In India, a lot of people still shop in tiny street-corner stores, and the deal could be Amazon’s way that would acknowledge that it needs to be an entrenched local partner with a robust on-ground presence.
Reliance would provide a brick-and-mortar component to Amazon and its ambitions in a country where online purchasing still accounts for a lower scale share of the $1 trillion retail markets.
For Reliance, the deal would further credence to Ambani’s ambitions to create an e-commerce giant similar to India in partaking to Alibaba Group.