Amazon in Talks to Buy 40% Stake in Reliance Retail for $20 Billion: Report

Sep. 10, 2020

Having sold around25% stake in Jio Platformsto leading global tech companies and venture capital firms earlier this year,Reliance Industries is now reportedly offering to sell a $20 billion stake in its retail business to US e-commerce giant, Amazon. That’s according to sources quoted byBloomberg Quint, which claims that the two companies have held discussions about a possible mega-billion dollar deal that could seeAmazonbuyup to 40% stakein Reliance Retail Ventures Limited (RRVL).

While an Amazon rep declined to comment on the matter, a Reliance spokesman issued the following statement to the publication in response to its queries:“As a policy, we do not comment on media speculation and rumors. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations”.

Meanwhile, the news aboutAmazon’s possible mega investmentcomes just a day after US-based private equity firm, Silver Lake, announcedit will invest $1 billion(~Rs. 7,500 crore) to pick up a 1.75% stake in Reliance Retail. The investment valued the company at a pre-money equity value of Rs. 4.21 lakh crore and, came merely a few weeks after it acquired Future Group’s retail, wholesale, logistics and warehousing business for Rs. 24,713 crore.

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