Saturday, May 25, 2024

Mukesh Ambani’s RIL set a final deal to buy stake of “Future Group”

Reliance Industries (RIL) and Future Group discussions are reportedly at an advanced stage, RIL wants to close the deal before the AGM (Annual General Meeting) on July 15.

According to the deal, three companies promoted by Biyani – Future Retail, Future Lifestyle Fashion, and Future Supply Chain Solutions will be merged and the combined business will be acquired by RIL.

Biyani will be left with control of Future Group’s FMCG business and some other smaller groups. Companies like Future Consumer and Future Market Networks might remain with Biyani. These details are yet to be finalized as talks were under way on Monday.

Several large companies, including online retail titan Amazon, had shown interest in Future Group, but a deal with RIL offered a thorough solution to Biyani’s debt issues. It is likely to be difficult agreement as, first, Future Group will announce a scheme of arrangement to merge into one company.

RIL is most likely to buy out this combined entity in exchange for its shares. Existing investors in various Future Group businesses like Amazon, Blackstone, and Premji Invest may get shares in RIL. Amazon has had a business partnership with Future Group, since 2014 and had brought an indirect stake in Future Retail by increasing the funds of Biyani’s.

“It’s fair to assume it is going in Reliance’s direction now”, compared to last week when it could have gone either way. This deal would add a new dimension and will have a significant impact on the retail sector – both online and offline, as Future Retail has over 1500 retail stores in various formats through brands like Big Bazaar, Nilgiris and Easyday, while Future Lifestyle has 300 stores through brands life central and Brand Factory.

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