The Securities and Exchange Board of India (SEBI) has given approval to the deal between Future Group and Reliance Retail Ventures Ltd(RRVL), where Future group will sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail for Rs 24,713 crore.
- This deal was earlier approved by Competition Commission of India(CCI).
Key Info about the Acquisition:
i.This acquisition is part of the scheme in which Future Group is merging certain companies carrying on the above said businesses into Future Enterprises Limited (FEL).
ii.As a part of the same Scheme:
- The retail & wholesale undertaking will be transferred to Reliance Retail and the Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL.
- The logistics & warehousing undertaking will be transferred to RRVL.
iii.This deal was announced in August 2020.
iv.After the amalgamation, 74.2% of the business value of FEL will be transferred to RRFLL and RRVL.
Future Group and RRVL is directed to get approvals from theNational Company Law Tribunal (NCLT) and its other stakeholders.
Recent Related News:
On November 11, 2020 Insurance Regulatory and Development Authority of India(IRDAI) gave its final approval for the merger of HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance Co Ltd) with HDFC ERGO General Insurance Co Ltd (HDFC ERGO).
About Reliance Industries Limited (RIL):
Reliance Retail Ventures Ltd(RRVL) is the subsidiary of RIL
Chairman & Managing Director(CMD) – Mukesh Ambani
Headquarters – Mumbai, Maharashtra
About Future Group:
Founder & Group CEO– Kishore Biyani
Headquarters– Mumbai, Maharashtra
MD of Future Retail Ltd– Rakesh Biyani