Four listed companies of Future Group jumped nearly 20 per cent on the stock market today. Here is all you need to know.
Shares of Future Group companies surged nearly 20 per cent today. (Photo: Reuters)
Shares of Future Group’s listed companies rallied 20 per cent on the stock market on Monday despite a sharp correction in stock markets.
Listed companies under the group such as Future Retail, Future Lifestyle Fashions, Future Enterprises and Future Consumers jumped sharply by 20 per cent on the BSE and NSE during today’s intra-day trading session.
WHY FUTURE GROUP STOCKS SURGED TODAY?
Shares of Future Group companies surged nearly 20 per cent today after antitrust regulator Competition Commission of India (CCI) suspended Amazon.com Inc’s 2019 deal with the group.
While this is a big blow to Amazon, it is a fresh window of opportunity for Future Group to go forward with its deal with Reliance Retail. CCI said that the US e-commerce giant suppressed crucial information while seeking regulatory approval two years ago for its $200 million investment in Future Group.
Read | Big setback to Amazon as CCI suspends 2019 deal with Future Group, imposes Rs 200 crore penalty
Several reports indicate that Future Group is likely to approach various courts and tribunals, including the Supreme Court, National Company Law Tribunal (NCLT) and the Singapore International Arbitration Centre (SIAC) with the latest CCI decision.
The decision comes a blow to Amazon as the company has successfully used the terms of its 2019 deal for months to block Future’s attempts to sell retail assets for Rs 24,713 crore to Reliance Retail.
The CCI has imposed a fine on Amazon and said it will be given time to submit information again to seek approval. However, a person with direct knowledge told news agency Reuters that Future Group was unlikely to cooperate with Amazon if it tries to reapply for antitrust clearance.
All stakeholders involved in the cases have remained tightlipped after the recent CCI verdict, but Amazon said last week that it was reviewing the order and will decide on its next steps in due course.
People familiar with the matter also told the news agency that Amazon is likely to challenge the CCI verdict soon.
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