Reliance Retail To Extend Closure Of Future Group Deal Till September 2021

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Source: Twitter

Reliance Retail Ventures has agreed to extend the timeline for long stop for Future Group deal by another six months, after the deal completion was delayed due to a court battle with Amazon. Long stop is when parties agree on a timeframe in which all the deal conditions are met and the transaction is completed. This is as per a report in the Economic Times.

Reliance Retail Ventures Ltd, a unit of Reliance Industries, agreed to buy the retail assets of Future Group on a slump sale basis for about Rs 25,000 crore, it was announced in August with a long stop of 31 March this year.

Source: Zee Business

“Pursuant to the provisions of scheme and other transaction documents executed in relation thereto, RRVL has in exercise of the right provided thereunder, extended the timeline for Long Stop Date from March 31, 2021 to September 30, 2021,” said Future Retail in a statement.

Amazon, which owns a 49% stake in Future Coupons Pvt. Ltd, a Future Group holding company, has objected to the deal and approached the arbitration court in Singapore, which said it should be suspended pending a final decision. Since the past few months, the transaction is under dispute in the Delhi High Court and the matter is also listed in the Supreme Court and scheduled for hearing on April 27.

Source: The Economic Times

Since the past three months, Reliance Retail has started using Future Group’s supply chain unit for its logistics and warehousing needs in the food, groceries and fashion retail businesses, even as both firms await the final approvals for their deal for retail assets from NCLT. Reliance has also extended crucial support to normalise Future Group’s other businesses — consumer goods firm Future Consumer and apparel manufacturing company Future Enterprises have received large orders from Reliance Retail.

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