RIL close to buying Future Group’s retail biz: Report
Bengaluru, July 28
Mukesh Ambani’s Reliance Industries Ltd (RIL) will pay between Rs 24,000 crore and Rs 27,000 crore ($3.2-$3.6 billion) to buy the Indian retail chains owned by Future Group, according to a news report published on Tuesday, citing two sources familiar with details of the deal.
Rs27,000-crore transaction likely
According to a news report, RIL will pay between Rs24,000 crore and Rs27,000 crore to buy the retail chains owned by Future Group
Reliance’s existing retail operation already runs close to 12,000 stores, including a cash-and-carry wholesale business, in over 6,700 towns and cities
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Asia’s richest man, Ambani has been buoyed by investments close to $20 billion from backers, including Google and Facebook in his oil-to-telecom conglomerate, and is seeking to strengthen his hand in India’s huge retail sector.
Reliance’s existing retail operation already runs close to 12,000 stores, including a cash-and-carry wholesale business, in over 6,700 Indian towns and cities.
Owned by India’s “father of modern retailing”, Kishore Biyani, Future Group is home to supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.
A series of media reports have said the two were nearing agreement on the deal.
Ratings agency ICRA estimates total debt at Future Group’s companies had risen to Rs 12,770 crore by September last year and the company has since faced widespread closures due to the lockdowns. — Reuters
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