Now cancelled what Reliance Industry had announced way back in Aug 2020. Now Reliance cannot acquire the retail, wholesale, logistics and warehousing businesses of Future Group. The deal size was around Rs 24,713 crore. The acquisition was planned through the company’s subsidiary Reliance Retail Ventures.
This news brought a major set-back to the retail investors of Future Group. This flop-show of acquisition scheme has even raised questions for the secured lenders like State Bank of India (SBI) who owed over ₹ 16,000 crore to the Kishore Biyani’s Future Retail Group. Bankruptcy process has been left as the only way out for the recovery of this huge amount.
Why the acquisition deal is cancelled by RIL
As per the sources, Secured creditors of Future Group rejected the deal during voting, whereas the shareholders and unsecured creditors of Future Retail Group (FRL) had voted in favor of the scheme.
Reliance Industries said on Saturday its deal with Future Group “cannot be implemented” after secured creditors in the latter rejected it, the company said in an exchange filing.
Besides Reliance, Amazon had also shown a keen interest in acquiring Future Retail Group but Amazon could not get through due to technical issues related to FDI.
Reliance got something finally?
Reliance however, has already taken over a good number of large format stores and small format stores citing about rent payment defaults by FRL. Earlier, Reliance had tapped an opportunity by taking over good amount of land from the respective land owners through lease. This opportunity was tapped by Reliance after FRL started defaulting lease payment to the land owners.