Amazon Acquires Future Coupons
- by Maggie Mead
SEATTLE, WA - While the e-tail giant continues to expand stateside, Amazon is pressing forward with its growth efforts internationally as well. Earlier this year, the company took steps to ramp up its operations in Japan, and has now set its sights on the lucrative India market. Amazon.com NV Investment Holdings recently submitted a proposal to acquire just shy of a 50 percent share in Future Coupons Ltd (FCL), an Indian Future Retail promoter group company, and has just gotten approval to move ahead with its acquisition plans.
The retailer’s proposal for a 49-percent acquisition was approved by the Competition Commission of India (CCI), resulting in a stock price surge for Future Retail and Future Enterprises, which rallied over 18 percent each on the Bombay Stock Exchange, according to CNBC TV18.
Amazon.com NV Investment Holdings is a subsidiary of Amazon.com, Inc (ACI) and is a member of the Amazon group. According to the news source, Future Coupons is a subsidiary of Future Group, which owns 7.3 percent stock in Future Retail, which operates 295 Big Bazaar stores and around 1,600 local neighborhood grocery stores.
The combination that has been proposed consists of other constituent steps involving FCL, Future Corporate Resources Pvt Ltd (FCRPL), and Future Retail Ltd (FRL), the news source reports. FCL markets and distributes corporate gift cards, loyalty cards, and reward cards to corporate customers, while FCRPL manages consultancy services and trades in goods and services, with investments in various Future Group of companies.
As a result of the deal, it is anticipated that Future Group will see its capabilities rise in the online retail space and a significant expansion of its brick-and-mortar presence in India.
How will Amazon shape the retail space in India? AndNowUKnow will bring you updates.