Amazon.com Inc. is in late-stage talks to acquire as much as 10 percent of India’s Future Retail Ltd, people familiar with the negotiations said, as the US company moves to bolster its bri-
ck-and-mortar presence in one of the world’s fastest-growing retail markets.
India’s No. 2 retailer by turnover, Future is seeking a valuation of about 20 billion rupees ($281 million) from Amazon for the stake, according to the people, who asked not to be identified as the discussions are private. The sale is likely to be routed through a holding company, they said, and will give Amazon the option to buy more shares from Kishore Biyani, Future Retail’s founder and chairman.
The deal with the Mumbai-based company, which operates its flagship “Big Bazaar” grocery store chain, will give Amazon more exposure to the business after it bought Whole Foods Market Inc for $13.7 billion in 2017 and secured a foothold in the US food retailing segment.
The proposed investment in Future Retail offers some parallels, enabling Amazon to tap into India’s rising demand for household products and home-delivered fresh produce and vegetables.
Discussions are yet to be finalized, and the deal could still falter or be delayed.