Reliance Industries’s Reliance Retail today announced that it is acquiring Future Group’s Retail & Wholesale Business and the Logistics & Warehousing Business in a deal worth 24,713 crore. This is part of the Scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL).
As a part of the same Scheme:
- The Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL
- The Logistics & Warehousing Undertaking is being transferred to RRVL
- RRFLL also proposes to invest:
- INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity
- INR 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in RRFLL acquiring further 7.05% of FEL.
The acquisition complements and makes a strong strategic fit into Reliance’s retail business and will to accelerate providing support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times, said the company.
Future Group’s portfolio composition in apparel, general merchandise and own FMCG brands will allow for a wider offering to its customers. The acquisition is subject to approvals from SEBI, CCI, NCLT, shareholders, creditors and others.
Commenting on this, Isha Ambani, Director, Reliance Retail Ventures Limited, 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. 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.