Mumbai: Mukesh Ambani after expressing his ambition of making Reliance a combination of retail and telecom along with its oil project, the American retail giant Amazon.com incl has approached the reliance company with an intention to buy 26% of its stakes.
But the sources show no certainty of the talks leading to a final deal. Alibaba could not crack the deal of buying stakes in retail entity due to differences overvaluation. Amazon still has scope to attract more users to its website and it has been in war with its competitor Flipkart. It is very important for amazon to get a secure place in Indian markets and owning the reliance stake could just be the necessary move.
Amazon wants to buy a stake lesser than 26% as more than that could make the company according to the revised FDI norms a group company. Amazon wants reliance to become a better seller in the Indian marketplace.
The gains earned by both the firms by this deal are beneficial for them. With buying 26% of the stake Amazon could get the wide connectivity of the offline stores and if FDI rules ease, it could get closer integration of business. On the other hand, reliance will get funds to reduce the debt of Rs. 2.88 lakh crore. And an e-commerce platform with large consumer traffic.