The Competition Commission has cleared Reliance’s proposed acquisition of Future Group. The Rs 24,713 crore deal that would boost Reliance Industries’ fast growing retail business was announced in August.
Announcing the decision on Twitter on Friday, CCI said, “Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited.”
Amazon had claimed before the CCI that the so called “injunction” of the Emergency Arbitrator was binding on CCI and that CCI should stop processing the application and should not give its approval. But CCI has now gone ahead and approved the deal.
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.
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.