Future Group, Bharti Retail in talks for partnership

Homegrown retail major Future Group and Bharti Retail are understood to be in advanced stage of talks to merge their businesses with a deal expected to be announced early next month.

A multi-structured deal on the basis of share swap is being worked out between the two partners, post which Kishore Biyani-led Future Group will become the majority partner, according to sources. They said Bharti Retail's Easyday supermarkets, which deal in day-to-day food and grocery items, are likely to be merged with Future Consumer Enterprise.

On the other hand, Bharti Retail's hypermarkets under the Easyday Market brand will be merged with Future Retail, they added. "In return, Bharti will get shares in companies wherever their businesses reside in Future group companies," a source said. When contacted, a Future Group spokesperson denied any "such development happening with anybody".

On the other hand, a Bharti Group spokesperson said: "We do not comment on market speculations." Bharti Group had initially hoped for a full-fledged retail play, keeping its options open for partnership with its erstwhile cash and carry partner Walmart.