“It is a strategic relationship that these funds have with Reliance which goes beyond one deal,” said this source.
PIF and Mubadala declined to comment.
Reliance Retail, which has nearly 12,000 stores and sells everything from groceries to iPhones, acquired rival Future Group’s retail arm last month.
This week, it announced a $1 billion investment from U.S. private equity firm Silver Lake Partners.
“We’ve received strong interest from strategic and financial investors in Reliance Retail,” Ambani told shareholders at the company’s annual meeting in July.
Bloomberg News cited on Thursday an unidentified person with knowledge of the matter as saying Reliance was offering to sell a roughly 40% stake in its retail arm, worth about $20 billion, to Amazon.
Amazon has held talks about investing in Reliance Retail and expressed an interest in negotiating potential deals, but has made no decision, Bloomberg’s report said.
Reuters could not independently verify whether Amazon and Reliance were in fresh discussions.
Last year, Reuters reported that Amazon had been mulling a proposal to purchase an up to a 26% stake in Reliance Retail. Earlier this year, the Economic Times reported that Amazon was in talks to buy a 9.9% stake in Reliance Retail.
Amazon did not respond to a Reuters request for comment.
Reliance said it did not comment on speculation and rumors, adding it “evaluates various opportunities on an ongoing basis.”