Amazon likely to buy 9.5% stake in Future Retail: Report

New Delhi: Amazon.com Inc is likely to buy 9.5 percent stake in India`s Future Retail Ltd through foreign portfolio investor (FPI) route, a financial daily reported, citing sources.

The potential deal, which is in its final stages, could be Rs 2,500 crore and is likely to be signed by November 14, the Economic Times said.

“Amazon, through the foreign portfolio investor (FPI) route, will buy about 9.5% stake in Future Retail and has already signed a term sheet. The deal will be announced after board approval on November 14,” ET said.

The potential deal will be next in a series of acquisitions by Amazon.com Inc in one of the fastest-growing markets in the face of competition from Walmart Inc`s Flipkart.

In September, Amazon, along with private equity firm Samara Capital, bought Aditya Birla Group-owned `More` retail chain for an enterprise value of 42 billion rupees ($568.03 million).

Kishore Biyani-led Future Retail has more than 1,100 physical stores across India. ET said that both the companies started “exploring an alliance in January” this year when Biyani first met Amazon founder Jeff Bezos at his Seattle headquarters. Later, a series of meetings were held by executives of both companies in India and the US, ET added.

Amazon India and Future Retail did not immediately respond to requests seeking comment.