Reliance Future Retail Deals – RIL About to Buy Future Group’s Retail Business

Latest News about Reliance Future Retail Deals – It is certain now that oil-to-telecoms conglomerate Reliance Industries Ltd , led by Asia’s richest man Mukesh Ambani, is close to acquiring Future Group’s retail unit. TOI has reported in details the ongoing buying process.

RIL is in late-stage talks to acquire the retail business of Future Group. The two have ironed out their differences over certain terms and conditions and a deal will be announced soon, said people familiar with the negotiations. The deal will be financed through a mix of share-swap and cash.

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Future’s are having business spread across various entities, including six listed companies. RIL will acquire the retail, supply-chain and related businesses of Future, which will mark the end of founder Kishore Biyani’s play in India’s. A point under discussion has been Biyani’s role after the deal. One of the people quoted earlier pointed out that companies in which RIL acquires a minority stake, the founder-promoters continue to manage the show.

A second person said that the deal has taken time due to disagreements over the valuation of Future Retail, the flagship of Biyani’s enterprise. Future Retail, meantime, is facing increased liquidity pressure after it missed interest payments on its US dollar-denominated bonds last week. Subsequently, Fitch cut its credit ratings on the company. Promoters own 42% in Future Retail, which runs hypermarket chain Big Bazaar and neighbourhood grocery chain Easyday Club, but 75% of the holding is pledged as on June 30, 2020.

The board members of Future have finally agreed with the final contours of the deal that was being worked out among the parties. A resolution will be passed over the next few days,” said a person familiar with the development. Biyani is likely to retain the FMCG and residual businesses of Future, the person added. 

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