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Mukesh Ambani buys Big Bazaar: Future Group’s retail, wholesale, logistic biz sold to Reliance

Mukesh Ambani-led Reliance Industries’ subsidiary Reliance Retail Ventures Limited (RRVL) announced to acquire the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group in a mega transaction for Rs 24,713 crore. The acquisition has been done 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 by way of a slump sale the retail and wholesale business such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL).

Under this scheme, Future Enterprises’ Retail & Wholesale Undertaking has been transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL; further, Future group’s Logistics & Warehousing Undertaking transferred to RRVL. Reliance Retail and Fashion Lifestyle has also proposed to invest Rs 1,200 crore in the preferential issue of equity shares of Future Enterprises to acquire 6.09 per cent of post-merger equity; and Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 per cent of the issue price, will result in Reliance Retail and Fashion Lifestyle acquiring further 7.05 per cent of Future Enterprises.

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