Reliance Industries Ltd. (RIL) soared 2.7 per cent after the announcement that its subsidiary Reliance Retail Ventures will acquire Future Group including its retail and wholesale, and the logistics and warehousing businesses for Rs 24,713.
The stock of RIL was traded for Rs 2,135 apiece at 12.50 pm, which was up by 0.9 per cent from its previous closing, while the Sensex was at 39,299.32 down by 0.6%.
The acquisition of the Future Group’s retail, wholesale and supply chain business will help RIL’s retail business to give support to its millions of small merchants in gaining competitive advantage and enhancing their income. RIL said Future Group’s apparel, general merchandise and FMCG brands would also help its customer to offer a wide range of products.
Future Group’s portfolio composition in apparel, general merchandise and own FMCG brands will allow for a broader offering to its customers, and the acquisition will be subject to approvals from various regulators, shareholders, and creditors, RIL said.
Isha Ambani, Director of Reliance Retail Ventures, on the acquisition said: “The company hopes to continue the growth momentum of the retail industry with a unique model of active collaboration with small merchants and kiranas as well as large consumer brands.”
As per the deal, Future Group will merge its certain companies into Future Enterprises Ltd. (FEL). The retail and wholesale business of Future Group will be transferred to Reliance Retail, and Fashion Lifestyle Limited (RRFLL) and, the logistics and warehousing undertaking would be transferred directly to Reliance Retail Ventures Ltd.(RRVL).