Reliance Industries Offers Amazon $20 Billion Stake In Retail Arm: Report

Led by Indian billionaire Mukesh Ambani, Reliance Industries Ltd. is offering to sell roughly $20 billion stake of its retail business to Amazon.com Inc., according to a person with knowledge of the matter.
 
 

Amazon has held discussions about investing in the conglomerate’s Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating a potential transaction. The technology giant has considered investing in Reliance Retail  Ventures and is willing to sell up to a 40% stake in retail unit, the report said.

 The deal, if successful, wouldn’t only create a retail behemoth in India but also will turn Jeff Bezos and Asia’s richest  man from rivals into allies in one among the fastest-growing consumer markets within the world. 

Shares in Reliance Industries were up 6.2 per cent in midday trading in Mumbai after hitting an all-time high. The corporate earlier on Thursday also became the first listed Indian firm to cross $200 billion in market capitalization.

Oil to Telecom Conglomerate , Mr Ambani is redirecting his focus toward retail after successfully building India's top telecom network by customers in about four years, hoping to acquire a dominant position as the country's huge consumer market comes of age.

In India, where tons of individuals still shop in tiny street-corner stores, the deal can turn out to be  Amazon’s way of acknowledging that it needs a locally-entrenched partner with a strong on-the-ground presence. For Amazon, Reliance would offer a brick-and-mortar component to its ambitions in a nation where online purchasing still accounts for a minuscule share of an estimated $1 trillion retail market.
 

Amazon hasn’t made any final judgement on the dimensions of its potential investment, and talks could still disintegrate, the person said, a representative for Amazon declined to comment.

 The investment in Ambani’s retail ventures comes after he raised $20 billion selling stakes in his technology venture -- Jio Platforms Ltd. -- to investors including Facebook Inc. and Google. The billionaire appears to be seeking to repeat that fundraising strategy together with his retail business.