Reliance Retail and Adani Group JV in the run to acquire Future Retail
April 12, 2023: Reliance Retail and Adani Group are reportedly in the running to acquire Future Retail, India’s leading retail company.
According to sources, both companies have submitted their bids for the acquisition and are among the top contenders for the deal.
The Adani Group, which has diversified business interests, including ports, airports, and energy, is said to be keen on expanding its retail operations and sees the acquisition of Future Retail as a strategic move to achieve this objective.
Reliance Retail, on the other hand, is already one of the largest players in India’s retail sector and has been aggressively expanding its footprint in recent years.
The acquisition of Future Retail, which owns popular supermarket chains like Big Bazaar and Easyday, is expected to be a major boost for either of the two conglomerates. The deal is also expected to significantly alter the landscape of India’s retail sector.
The acquisition of Future Retail is not without its challenges, however. The company has been struggling with a significant debt burden and has been seeking ways to restructure its debt and improve its financial position.
Future Retail’s founder, Kishore Biyani, has also been embroiled in a legal battle with e-commerce giant Amazon over the sale of Future Group’s assets to Reliance Retail.
The outcome of the legal battle is likely to have a significant impact on the acquisition of Future Retail and could potentially delay the deal.
However, both Mukesh Ambani-led Reliance Retail and Gautam Adani-led Adani Group remain optimistic about their chances of acquiring the company and are said to be closely monitoring the situation.
The acquisition of Future Retail is expected to be a major development in India’s retail sector and will be closely watched by investors and the business community alike.
Future Retail has received a total of 49 applications from prospective resolution applicants (PRAs) interested in acquiring the company, with Reliance Retail and Adani Group JV among the top contenders.
Both conglomerates had previously submitted bids for the acquisition, but the PRAs did not show up at the time of the final bid submission.
Reliance Retail and Adani Group JV, operating under the name April Moon Retail, have submitted their bid for the acquisition of Future Retail.
The bidders have the option to submit bids for acquiring parts of the company or the entire company in clusters.
However, priority will be given to PRAs interested in purchasing the company in its entirety. The final bid submission deadline is May 15, following which the lenders will make the decision.
The total debt of Future Retail stands at Rs 20,000 crore, with Bank of Baroda and Union Bank serving as lead creditors.
The acquisition of Future Retail is expected to be a significant development in India’s retail sector, and the outcome will be closely watched by investors and industry experts alike.
However, the acquisition may not be without its challenges, given Future Retail’s significant debt burden and the ongoing legal battle with Amazon over the sale of Future Group’s assets to Reliance Retail.
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