New Delhi: After major global investors bought stakes in the digital business of Reliance Industries Ltd (RIL), there are chances that the group will now take over Kishore Biyani-led Future Group’s retail assets. According to the report in business daily Mint, the group is trying to strengthen its position in the retail segment through the deal which is being estimated at ₹24,000-27,000 crore. Also Read: Silver Outshines Gold, Equities; Know Why The Precious Metal Remains Attractive For Investors
As per the report, the estimated deal includes the liabilities of the Future Group that RIL is likely to absorb. Before the deal goes through, the five listed entities, including Future Retail Ltd, Future Consumer, Future Lifestyle Fashions, Future Supply Chain, and Future Market Networks is expected to get merged into Future Enterprises Ltd (FEL). The acquisition will mark a massive consolidation in India’s retail market.
After this, FEL will proceed with the sale of its retail assets to one of the subsidiaries of RIL.
At present, the negotiations are being held between both parties and RIL retains exclusivity on the deal till 31 July, around when the latter is expected to sign a binding agreement. As per the report, there is still time before the deal gets sealed.
What is FEL into?
According to the website information, the entity develops, owns, and leases the retail infrastructure for the RIL. It also holds the group’s investments in subsidiaries and joint ventures, including insurance, textile manufacturing, supply chain, and logistics.
What is expected to be acquired?
If the deal goes through then the fashion and grocery retail formats from Future Group’s listed entities such as Big Bazaar, FoodHall, Nilgiris, FBB, Central, Heritage Foods, and Brand Factory, barring apparel brands Lee Cooper and All, will be acquired by RIL. Around 1,700 stores across formats may be acquired by RIL.
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