Amazon Wants to Buy a 10% Stake in India's Second-Largest Grocery Chain
Amazon.com (NASDAQ: AMZN) is in advanced discussions to acquire as much as a 10% stake in India's Future Retail Ltd. (with an option to buy more), according to a report by Bloomberg. The move is a sign Amazon is seeking to expand its brick-and-mortar presence in one the world's fastest-growing retail markets.
Future Retail is a chain of more than 900 stores in India and controls a total of nine supermarket brands. The company is the country's No. 2 retailer by product turnover (sales) and is looking to be valued at about 20 billion rupees ($281 million). Future Retail's flagship brand, Big Bazaar, operates 239 outlets across India and the acquisition would give Amazon traction for its burgeoning fresh grocery delivery business in the country.
Discussions are yet to be finalized, and the deal could still falter or be delayed, according to the report. This potential purchase is another indication that the e-commerce leader is trying to gain a larger retail foothold in the world's second-most-populated country.
Source Fool.com
