Reliance Industries (RIL) is in late-stage talks to acquire the retail business of Future Group as the two companies have ironed out their differences over certain terms and conditions and a deal will be announced soon.
RIL will acquire the retail, supply-chain and related businesses of Future, which will mark the end of founder Kishore Biyani’s play in India’s modern retail, an industry he pioneered.
The deal has taken time due to disagreements over the valuation of Future Retail, the flagship of Biyani’s enterprise. Future Retail, meantime, is facing increased liquidity pressure after it missed interest payments on its US dollar-denominated bonds last week.
Subsequently, Fitch cut its credit ratings on the company. Promoters own 42 per cent in Future Retail, which runs hypermarket chain Big Bazaar and neighbourhood grocery chain Easyday Club, but 75 per cent of the holding is pledged as on June 30, 2020.
Biyani is likely to retain the FMCG and residual businesses of Future The deal will be financed through a mix of share-swap and cash.