Reliance Retail to acquire Future Group's retail, wholesale businesses for Rs 24,713 crore

Reliance Retail Ventures Limited (RRVL) announced on August 29, 200 that it is acquiring the retail, wholesale business, logistics and warehouse business of Future Group for Rs 24,713 crore. 

The announcement has come amid ongoing concerns on a slump sale basis for lumpsum aggregate consideration. Reliance Retail will be buying the businesses from the Future Group for Rs 24,713 crore, subject to adjustments as set out in the composite scheme of arrangement.

The acquisition is a part of Future Group's decision of merging certain companies and carrying on the businesses into Future Enterprises Limited (FEL). Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Limited.

Key Highlights

• Under the new acquisition agreement, Reliance Retail and Fashion Lifestyle Limited will be taking over the retail and wholesale undertaking of Future Group.

• The logistics and warehousing businesses of the Future Group will also be transferred to Reliance Retail. 

• Reliance Retail has also proposed to invest Rs 1200 crore in the preferential issue of equity shares of Future Enterprises Limited to acquire 6.09 per cent of post-merger equity.

• Reliance Retail has also proposed to invest Rs 400 crore in a preferential issue of equity warrants which after conversion and payment of balance 75 per cent of the issue price, will result in RRFLL acquiring further 7.05 per cent of Future Enterprises Limited.

• The acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals. 

Reliance Retail Director Isha Ambani said that with this transaction, they are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem that has played an important role in the evolution of modern retail in India.

She further added saying that they hope to continue the growth momentum of the retail industry with their unique model of active collaboration with small merchants and kiranas as well as large consumer brands.