Reliance Deal To Acquire Retail Business Of Future Group

Reliance Industries (RIL) has come close to buying the retail business of Kishore Biyani's company Future Group. Negotiations between the two companies regarding the deal have reached an advanced stage.
Image Credit: BloombergQuint
Image Credit: BloombergQuint

Reliance's business will be further strengthened in categories such as grocery, fashion and general merchandise. Under the deal, Biyani will merge with at least three companies: Future Retail, Future Lifestyle Fashions and Future Supply Chain Solutions. The joint business will then be acquired by Mukesh Ambani's company.

Image Credit: Business Standard
Image Credit: Business Standard

The deal between the two companies has reached an advanced stage and RIL intends to complete it before the AGM scheduled for July 15. Sources say the specifics of the deal are in progress on both sides and a final deal has not been signed. Discussions about the deal started earlier this year when Biyani's holding company defaulted on loan repayments.

Reliance offer will solve Biyani's debt problem

Image Credit: BloombergQuint
Image Credit: BloombergQuint

Biyani, known as the retail king, has been searching for alternatives since then. These include stake sales in retail units. He also wants to sell his insurance joint venture Future Generali. Several other companies also showed interest in the Future Group. These included US retail giant Amazon. But a source said that Reliance's offer will solve Biyani's debt problem comprehensively.

Why this deal is interesting

Image Credit: www.wsj.com
Image Credit: www.wsj.com

"This could be a complex transaction," the source said. First, Future Group will announce plans to merge its companies into one company. RIL will then buy this company. The deal could be in shares. "Companies like Future Group, which has stakes in the business of Amazon, Blackstone and PremJIinvest, may get shares in RIL. The deal is also interesting because Jeff Bezos' company, Amazon, has had a business partnership with Future Group since 2014. Last year, Amazon bought an indirect stake in Future Retail by investing in a Biyani promoter company.

Reliance will acquire the entire retail business of Future Group

Image Credit: The Quint
Image Credit: The Quint

A person familiar with the matter said, "It would be correct to say that the company is now going to Reliance." Although other companies are still in talks with the Future, now its path is clear. 'Till last week, there was a situation where the company couldn't go to anyone. He said Reliance will acquire the entire retail business of Future Group. But some of the brands and manufacturing businesses under Future Consumer and Futures Market Networks may remain with Biyani. Spokespeople for Future Group and RIL did not respond to emails sent to them.

Like and Follow us on :

Related Stories

No stories found.
logo
Since independence
www.sinceindependence.com