Earlier in August, Mukesh Ambani-led Reliance Industries Ltd had announced the acquisition of retail businesses of Kishore Biyani's Future Group for Rs 24,713 crore
The Competition Commission of India (CCI) on November 10 approved the acquisition of retail, wholesale, logistics, and warehousing businesses of Future Group by Reliance Retail Ventures Ltd (RRVL) and Reliance Retail and Fashion Lifestyle Ltd."Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited," CCI wrote on Twitter.
Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited pic.twitter.com/4WKdIrLHRP
— CCI (@CCI_India) November 20, 2020
Earlier on August 29, 2020, Mukesh Ambani-led Reliance Industries had announced the acquisition of businesses of Kishore Biyani's Future Group for Rs 24,713 crore.
The mega transaction cements the position of Reliance Retail as the undisputed leader in the organised retail segment and adds muscle to its ongoing battle with Amazon for the Indian e-commerce market.
The Future Group houses leading retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory. The acquisition is being done as part of a scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Ltd (FEL).
The announcement comes as a setback to Amazon.com which has claimed that Future Group violated its agreement with the US e-commerce giant by entering into the deal with RIL.
Amazon had moved the Singapore International Arbitration Centre (SIAC) in October and won an interim stay on the deal. The SIAC passed the interim order asking Future Group to hold its plans of selling its retail business to RIL on October 25.
Amazon, last year, had bought a 49 per cent stake in one of Future's unlisted firms, Future Coupons Ltd, with the right to buy into FRL after a period between three and 10 years. Future Coupons owned a 7.3 per cent stake in Future Retail.
Along with this, Amazon even wrote to market regulator SEBI, stock exchanges and CCI seeking a stay on the deal.
Later, Kishore Biyani-led Future Retail Ltd (FRL) on November 7 moved the Delhi High Court against Amazon.com for interfering in its Rs 24,713 crore deal with Reliance Industries (RIL) by misusing the arbitration order passed by SIAC.Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”