Published 09:43 IST, November 24th 2020
Reliance & Future Retail shares soar after Competition Commission clears RIL's acquisition
On Monday, shares of Reliance Industries Ltd (RIL) closed nearly 3% higher after CCI approved the company's proposed acquisition of businesses of Future Group
Advertisement
On Monday, shares of Reliance Industries Ltd (RIL) closed nearly 3% higher after Competition Commission Of India (CCI) approved company's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group. Future Group stocks were also in heavy demand, rising up to 10%, PTI reported.
RIL shares rose 2.72% to close at Rs 1,950.80 on BSE. During day, it gained 3.72% to Rs 1,970. On NSE, it jumped 2.93% to close at Rs 1,955.20. company's market valuation rose by Rs 34,892.12 crore to Rs 13,19,138.30 crore on BSE.
Advertisement
Besides, Future Retail shares zoomed 9.95% to Rs 79 -- its upper circuit limit, Future Lifestyle Fashions gained 9.99% to Rs 90.30 and Future Enterprises Ltd shares rose 4.92% to its highest tring permissible limit for day at Rs 10.45 on BSE. Rs 24,713-crore deal that would boost RIL's fast-growing retail business was anunced in August.
CCI clears Future Group-Reliance Retail deal
In a tweet on Friday, regulator said it has approved "acquisition of retail, wholesale, logistics and 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 Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
Advertisement
Reliance buys Future Group
"Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries, will acquire retail and wholesale business and logistics and warehousing business from Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore," company said in a statement.
Through deal, Reliance will acquire Future Retail that owns BigBazaar that sells everything from groceries to cosmetics and apparel, and Future Lifestyle Fashions Ltd that operates fashion discount chain Brand Factory. While Reliance will takeover Future Consumer Ltd, which sells food, home, and personal care products, Future Group's financial and insurance business is t part of deal. Future Retail operates 1,550 stores. Its flagship brands are BigBazaar, FBB and Foodhall, Easyday, Herit Fresh and WHSmith. Future Lifestyle Fashion operates 354 stores.
Advertisement
Advertisement
Delhi High Court reserves order on Future's plea
Meanwhile, Delhi High Court on Friday reserved order on an application by Kishore Biyani led Future Retail Ltd (FRL) seeking to injunct Amazon from interfering in Rs 24,713 crores Reliance-Future deal on basis of an interim order passed by Singapore International Arbitration Centre (SIAC). Justice Mukta Gupta heard arguments for five days and asked parties to give written submissions, if any, by vember 23. Future Group and Amazon have been locked in a battle after US-based company took FRL into an emergency arbitration over an alleged breach of contract.
Advertisement
09:43 IST, November 24th 2020