Mukesh Ambani buys Big Bazaar: Future Group’s retail, wholesale and logistics business sold to Reliance Retail

Future Enterprises’ retail and wholesale commitment has been transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly owned subsidiary of RRVL

Reliance Retail Ventures Limited (RRVL), the subsidiary of Reliance Industries, led by Mukesh Ambani, announced the acquisition of Future Group’s retail and wholesale business and logistics and warehousing business in a mega transaction for Rs 24,713 crore. The acquisition has been made as part of the scheme in which Future Group is merging certain companies, including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into Future Enterprises Limited (FEL). Future Enterprises will subsequently sell retail and wholesale businesses such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory through a recessionary sale to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly owned subsidiary of Reliance Retail Ventures Limited (RRVL).

Under this scheme, the Future Enterprises Retail and Wholesale Engagement has been transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly owned subsidiary of RRVL; Additionally, Future Group’s warehousing and logistics business was transferred to RRVL. Reliance Retail and Fashion Lifestyle has also proposed to invest Rs 1,200 crore in the preferred issue of Future Enterprises shares to acquire 6.09 per cent of the shares post-merger; and Rs 400 crore in a preferential issue of warrants on shares which, upon conversion and payment of the balance of 75% of the issue price, will result in Reliance Retail and Fashion Lifestyle acquiring a further 7.05% of Future Enterprises.

RIL in a press release said that the acquisition of Future Group’s retail, wholesale and supply chain businesses will complement and make a strong strategic fit in Reliance’s retail business. The company believes this acquisition will help Reliance Retail accelerate supporting millions of small merchants to increase their competitiveness and improve their revenues during these difficult times.

This acquisition is subject to market regulator SEBI, CCI, NCLT, shareholders, creditors, and other necessary approvals. “With this transaction, we are pleased to provide a home for Future Group’s renowned brands and formats, as well as preserve its business ecosystem, which has played an important role in the evolution of modern retail in India,” said Isha Ambani, Director , Reliance Retail Ventures Limited.

Kishore Biyani, CEO of Future Group, said that as a result of this reorganization and transaction, Future Group will achieve a comprehensive solution to the challenges that have been caused by COVID and the macroeconomic environment. “This transaction takes into account the interest of all its stakeholders, including lenders, shareholders, creditors, suppliers and employees, giving continuity to all its businesses,” said Kishore Biyani.