In an attempt compete with global retail major Walmart and Indian rival Flipkart, ecommerce giant Amazon is planning to acquire Aditya Birla Group’s food and grocery supermarket chain, More.
As a part of the move, Amazon formed a cosortium along with Goldman Sachs private equity fund Samara Capital. The deal will value More at ₹4,500-5,000 crore.
According to reports, Samara and Aditya Birla Retail Ltd (ABRL), a private company of Kumar Mangalam Birla, signed an “exclusivity” agreement at the end of June for bilateral negotiations.
Amazon is also planning to pick up a 49% stake in a separate company formed by the partners of this deal and it will play the role of strategic partner in it.
However, Amazon, Goldman Sachs and Samara’s founder Sumeet Narang declined to comment on the deal. “It is not our policy to comment on market stories,” an Aditya Birla spokesperson said.
The acquistion will help Amazon to improve its position and influence in Indian market as a retailer and give access to the large customer base of More.