Online retailer Amazon is reportedly in talks to acquire 7% to 8% minority stake in India-based Future Retail for around $338m.
Sources familiar with the matter were cited by television channel CNBC-TV 18 as saying that the potential cash-and-stock deal is currently in its final stages and is expected to be materialised in the next two weeks.
In addition, the sources noted that Amazon will carry out the deal through an investment arm. However, both the firms declined to respond on the speculation.
Future Retail is the operator of Big Bazaar hyper and supermarket chain, fbb and Foodhall, Easyday Club, and eZone in India.
The latest development follows reports that emerged earlier this year about Amazon in talks to buy a 10% stake in Future Retail, competing with Google and Alibaba-backed Paytm.
The retail major has been increasing its footprint in India through acquisitions amidst competition from rival players such as Walmart and Reliance Retail.
Last month, a consortium of Amazon and private equity fund Samara Capital acquired supermarket chain More from Aditya Birla Group (ABRL) for an enterprise value of $568m.
In August, Amazon entered into talks to acquire a minority stake in Indian retail chain Spencer’s Retail in a move to further penetrate the country’s retail market.
In June this year, India-based investment firm PremjiInvest acquired a 6% stake in Future Retail for $252m from Cedar Support Services, a subsidiary of Bharti Ventures.