Reliance's business will be further strengthened in categories such as grocery, fashion and general merchandise. Under the deal, Biyani will merge with at least three companies: Future Retail, Future Lifestyle Fashions and Future Supply Chain Solutions. The joint business will then be acquired by Mukesh Ambani's company.
The deal between the two companies has reached an advanced stage and RIL intends to complete it before the AGM scheduled for July 15. Sources say the specifics of the deal are in progress on both sides and a final deal has not been signed. Discussions about the deal started earlier this year when Biyani's holding company defaulted on loan repayments.
Biyani, known as the retail king, has been searching for alternatives since then. These include stake sales in retail units. He also wants to sell his insurance joint venture Future Generali. Several other companies also showed interest in the Future Group. These included US retail giant Amazon. But a source said that Reliance's offer will solve Biyani's debt problem comprehensively.
"This could be a complex transaction," the source said. First, Future Group will announce plans to merge its companies into one company. RIL will then buy this company. The deal could be in shares. "Companies like Future Group, which has stakes in the business of Amazon, Blackstone and PremJIinvest, may get shares in RIL. The deal is also interesting because Jeff Bezos' company, Amazon, has had a business partnership with Future Group since 2014. Last year, Amazon bought an indirect stake in Future Retail by investing in a Biyani promoter company.
A person familiar with the matter said, "It would be correct to say that the company is now going to Reliance." Although other companies are still in talks with the Future, now its path is clear. 'Till last week, there was a situation where the company couldn't go to anyone. He said Reliance will acquire the entire retail business of Future Group. But some of the brands and manufacturing businesses under Future Consumer and Futures Market Networks may remain with Biyani. Spokespeople for Future Group and RIL did not respond to emails sent to them.
Like and Follow us on :
