Amazon and middle east sovereign wealth funds in talks to buy stakes in Reliance Retail

News comes as Silver Lake invests $1bn in Reliance Retail

Amazon and two middle east sovereign wealth funds are said to be in talks to acquire the retail arm of India’s Reliance Industries.

Led by Indian billionaire Mukesh Ambani, Reliance Industries is willing to sell a 40 per cent stake in its retail subsidiary to Amazon for $20bn (€16.6bn, £15.3bn), a person close to the matter said. 

Amazon has already held talks on acquiring Reliance Retail and wants to negotiate potential deals but no actual decision has been made to date.

At the same time, Abu Dhabi Investment Authority (ADIA) and and Saudi Arabia’s Public Investment Fund (PIF) are also looking to invest.

Adia would invest $750m at a valuation of roughly $57bn and PIF would pour as much as $1.5bn into the entity, if the deals went through.

It comes as US private equity firm Silver Lake said it will invest $1bn in Reliance Retail for around 1.75 per cent stake in the company.

This is the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after its $1.35bn investment in Jio Platforms earlier this year.

Reliance has already raised $20bn from investors including Google and Facebook this year.

Its shares were up 6.2 per cent in Mumbai midday trading.

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