Reliance Industries (RIL) share price jumped over 3 percent in the morning session on November 23 after CCI approved Future Group-Reliance Retail deal.
The Competition Commission of India (CCI) on November 10 approved the acquisition of retail, wholesale, logistics, and warehousing businesses of Future Group by Reliance Retail Ventures Ltd (RRVL) and Reliance Retail and Fashion Lifestyle Ltd.
“Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited,” CCI wrote on Twitter.
Also, share price of Future Retail jumped 10 percent and hit upper circuit of Rs 79 per share on BSE.
The Future Group houses leading retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory. The acquisition is being done as part of a scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Ltd (FEL).
Earlier on August 29, 2020, Mukesh Ambani-led Reliance Industries had announced the acquisition of businesses of Kishore Biyani’s Future Group for Rs 24,713 crore.
The mega transaction cements the position of Reliance Retail as the undisputed leader in the organised retail segment and adds muscle to its ongoing battle with Amazon for the Indian e-commerce market.
The stock was trading at Rs 1,958.85, up Rs 59.65, or 3.14 percent at 09:17 hours. It has touched an intraday high of Rs 1,958.85 and an intraday low of Rs 1,929.
The announcement comes as a setback to Amazon.com which has claimed that Future Group violated its agreement with the US e-commerce giant by entering into the deal with RIL.
Amazon had moved the Singapore International Arbitration Centre (SIAC) in October and won an interim stay on the deal. The SIAC passed the interim order asking Future Group to hold its plans of selling its retail business to RIL on October 25.
Later, Kishore Biyani-led Future Retail Ltd (FRL) on November 7 moved the Delhi High Court against Amazon.com for interfering in its Rs 24,713 crore deal with Reliance Industries (RIL) by misusing the arbitration order passed by SIAC.
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News Source:- Moneycontrol