Amid the coronavirus pandemic, as “assets and oil” continue to nosedive, the business tycoon of India, Mukesh Ambani needed to secure a winning deal to prevent “investor exodus from Reliance Industries Ltd.”.
And the opportunity was provided by none other than Facebook Inc’s C.E.O, Mark Zuckerberg, as the social media giant informed that it would be purchasing nearly “10% of Reliance’s digital assets for $5.7 billion” which marks the company’s “biggest purchase since acquiring WhatsApp” which was six years ago. Through this deal “formidable e-commerce force” would be created in India to take on Walmart Inc. and Amazon.com Inc..
The said “all-cash” deal was in the talks at least from mid-2019. However, with the lockdown imposed due to COVID-19 pandemic, the deal talks were continued over “video conferences and phone calls”. The said deal will be pairing “WhatsApp’s payment platform” with Ambani’s “e-commerce startup JioMart”. While, the KJMC Capital Market Services Pvt.’s Director, Rajnesh Jain said:
“Given the collapse in oil prices and the delay in Aramco deal, they needed good news fast and this one is a big good news in the current environment”.
Furthermore, report in livemint.com informed:
“Under the agreement, Facebook’s WhatsApp will help almost 30 million mom-and-pop stores -- the backbone of India’s retail industry -- to process digital payments, Ambani said. Through this, the tycoon gains a payment platform for his e-commerce unit and startup, JioMart, while Facebook gets a testing ground for its payment services -- currently in pilot -- in a market with a population of 1.3 billion people”.
Thanks to the news of the deal reports from livemint.com added:
“Reliance Industries’ market value surged about $11 billion on the deal, which has been rumored for some months. It saw Ambani regain the title of Asia’s richest man from Alibaba Group Holding Ltd.’s co-founder Jack Ma after the market rout sparked by the pandemic wiped out about $30 billion from his wealth between Dec. 19 and March 23”.
The Head of Research at IIFL Securities Ltd, Abhimanyu Sofat informed that the deal happens to be a “great catch for Reliance Industries that has been struggling with delays in its deleveraging exercise. It will have to pursue further opportunities, including Aramco, at the earliest”.
References:
livemint.com
And the opportunity was provided by none other than Facebook Inc’s C.E.O, Mark Zuckerberg, as the social media giant informed that it would be purchasing nearly “10% of Reliance’s digital assets for $5.7 billion” which marks the company’s “biggest purchase since acquiring WhatsApp” which was six years ago. Through this deal “formidable e-commerce force” would be created in India to take on Walmart Inc. and Amazon.com Inc..
The said “all-cash” deal was in the talks at least from mid-2019. However, with the lockdown imposed due to COVID-19 pandemic, the deal talks were continued over “video conferences and phone calls”. The said deal will be pairing “WhatsApp’s payment platform” with Ambani’s “e-commerce startup JioMart”. While, the KJMC Capital Market Services Pvt.’s Director, Rajnesh Jain said:
“Given the collapse in oil prices and the delay in Aramco deal, they needed good news fast and this one is a big good news in the current environment”.
Furthermore, report in livemint.com informed:
“Under the agreement, Facebook’s WhatsApp will help almost 30 million mom-and-pop stores -- the backbone of India’s retail industry -- to process digital payments, Ambani said. Through this, the tycoon gains a payment platform for his e-commerce unit and startup, JioMart, while Facebook gets a testing ground for its payment services -- currently in pilot -- in a market with a population of 1.3 billion people”.
Thanks to the news of the deal reports from livemint.com added:
“Reliance Industries’ market value surged about $11 billion on the deal, which has been rumored for some months. It saw Ambani regain the title of Asia’s richest man from Alibaba Group Holding Ltd.’s co-founder Jack Ma after the market rout sparked by the pandemic wiped out about $30 billion from his wealth between Dec. 19 and March 23”.
The Head of Research at IIFL Securities Ltd, Abhimanyu Sofat informed that the deal happens to be a “great catch for Reliance Industries that has been struggling with delays in its deleveraging exercise. It will have to pursue further opportunities, including Aramco, at the earliest”.
References:
livemint.com
