Future Retail zooms up to 18% on CCI approval to Amazon-Future Coupon deal

Shares of Future Group companies gained big in the early morning deals on Friday, a day after the Competition Commission of India (CCI) said it has approved Amazon.com NV Investment Holdings' proposal to acquire about 49 per cent share in Future Coupons (FCL) - a subsidiary of Future Group.

Future Coupons own 7.3 per cent shares in Future Retail, and with this transaction, Amazon would acquire around 3.58 per cent stake in Future Group.

At 09:39 am, Future Enterprises was trading over 18 per cent higher at Rs 26.20 apiece on the BSE while Future Retail was up 13 per cent at Rs 371. The stock climbed as much as 18 per cent to hit a high of Rs 387.90.

Future Consumer was ruling nearly 9 per cent higher at Rs 28 and Future Lifestyle Fashions was trading at Rs 417, up over 2.50 per cent. In comparison, the S&P BSE Sensex was trading nearly 150 points or 0.36 per cent lower at 40,982 levels. 

"The proposed combination pertains to the acquisition by the acquirer (Amazon) of approximately 49 per cent of the voting and non-voting equity shares of the target (Future Coupons Ltd)," a statement said. 

The proposed combination consists of certain other constituent steps involving Future Coupons Ltd (FCL), Future Corporate Resources Pvt Ltd (FCRPL), and Future Retail Ltd (FRL).

Amazon.com NV Investment Holdings is a direct subsidiary of Amazon.com, Inc (ACI) and belongs to the Amazon group. ACI is the ultimate parent entity of the Amazon group, it added.

FCL is broadly engaged in marketing and distribution of corporate gift cards, loyalty cards and reward cards to corporate customers.