Competition Commission Clears Reliance's Rs 24,713 Crore Deal with Future Retail, Setback for Amazon
Meanwhile, e-commerce major Amazon has opposed the deal between Future Group and Reliance. Last year, Amazon bought 49 per cent stake in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd.
- PTI New Delhi
- Last Updated: November 21, 2020, 8:31 IST
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The Competition Commission has approved Reliance's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group. The Rs 24,713 crore deal that would boost Reliance Industries' fast growing retail business was announced in August.
In a tweet on Friday, the regulator said it has approved "acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited". Deals beyond a certain threshold require approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
As per the notice submitted to the CCI, there are at least seven target entities. They are Future Enterprises, Future Consumer Ltd, Future Lifestyle Fashions Ltd, Future Retail Ltd, Future Market Networks Ltd, Future Supply Chain Solutions Ltd and Futurebazaar India Ltd and its subsidiaries. "The Transferor Companies consists of several listed and unlisted companies, primarily engaged in retail, wholesale, logistics and warehousing businesses.
"These businesses operate on a pan-India basis, and include retail operations across segments such as food and grocery, apparel, footwear and accessories, other merchandise, etc," the notice said. Meanwhile, e-commerce major Amazon has opposed the deal between Future Group and Reliance.
Last year, Amazon bought 49 per cent stake in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd. Amazon has claimed that its contract with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Reliance.