Reliance to buy stakes in Future Group for ₹24,713 crore
Mukesh Ambani’s Reliance Industries Limited on Saturday (August 29) announced it will acquire the retail and wholesale business as well as the logistics and warehousing business of the Future Group for ₹24,713 crore.
Mukesh Ambani’s Reliance Industries Limited on Saturday (August 29) announced it will acquire the retail and wholesale business as well as the logistics and warehousing business of the Future Group for ₹24,713 crore.
The acquisition will be made through RIL’s subsidiary Reliance Retail Ventures Ltd (RRVL), the company said in a statement.
#RRVL, subsidiary of #RelianceIndustries, to acquire Retail & Wholesale Biz & Logistics & Warehousing Biz from #FutureGroup for aggregate of Rs 24,713 crore. Future Group’s apparel, general merchandise & own FMCG brands will add wider offering for #RelianceRetail customers. pic.twitter.com/ALOFRKq2tv
— Parimal Nathwani (@mpparimal) August 29, 2020
“Reliance Retail Ventures Limited (RRVL), subsidiary of Reliance Industries Limited, today announced that it is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore, subject to adjustments as set-out in the composite scheme of arrangement (Scheme),” RRVL said in a media release.
The acquisition is being done as part of the scheme in which Future Group is merging certain companies carrying on these businesses into the Future Enterprises Limited (FEL), according to the release.
RRVL said the acquisition of the retail, wholesale, and supply chain business of the Future Group complements and makes a strong strategic fit into Reliance’s retail business.
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“This will help Reliance retail to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times,” the company said.
“With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India,” said RRVL director Isha Ambani.
“We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country,” she added.
