new Delhi. A possible deal between Mukesh Ambani-led Reliance Retail and Kishore Biyani's Future Enterprises is expected to be completed in a day or two. The board of the two companies are scheduled to meet on Saturday, in which the deal can be finalized. According to a report by Economic Times, it is also expected that the deal will be entirely in cash. Reliance Retail will take over all the debts and liabilities of Future Group and will buy a stake in the FMCG unit.
According to the report, the deal can cost between Rs 29,000 and Rs 30,000 crore, and Future Enterprises Ltd. of five units of Future Group. Will be merged with. According to sources, Future Enterprises Ltd. All retail businesses will be merged and sold to RIL as a unit.
According to Business Daily's report, Reliance will give Rs 13,000 crore to Future Group to repay the debt. Apart from this, Rs 7,000 crore will be paid to the liabilities (payment to landlords and vendors) and Rs 6000-7000 crore to the promoter group. Reliance will pay Rs 3,000 crore to buy a 14 to 16 percent stake in Future Enterprises. As part of the deal, Future Enterprises will also enter into a long-term supply agreement with Reliance Retail for apparel and grocery.
Market analysts say that the deal will give Reliance Retail a significant stake in the grocery and apparel segment, where it is trying to become a market liter. Reliance Retail achieved revenue of Rs 1.63 lakh crore in the last financial year. The deal with Future Group will help RIL gain control of over one-third of the organized retail market in India.
This will make Reliance a big market leader and will put a lot of pressure on competitors. It is already a market leader in the telecom and digital segments, but does not guarantee high store success in retail.
This post was published on August 28, 2020 10:08 am
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