Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, on Saturday announced it is acquiring the retail, wholesale business and logistics businesses of Future Group for consideration of Rs 24,713 crore.

Future Enterprises will sell, by way of a slump sale, the retail and wholesale business which includes Big Bazaar, FBB, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly owned subsidiary of Retail Ventures Limited (RRVL). It will also sell the logistics warehouse business to RRVL via a slump sale. RRFLL and RRVL will take over certain borrowings and current liabilities and discharge the balance consideration by cash.

The acquisition is being done as part of the merger scheme among Future group companies into Future Enterprises Limited (FEL), under which the retail and wholesale business is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL while the logistics and warehousing undertaking is being transferred to RRVL.

RRFLL proposes to invest Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity; and Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in RRFLL acquiring further 7.05% of FEL.

“"With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India,” said Isha Ambani, Director, Reliance Retail Ventures.

“We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country," she said.

Future’s portfolio composition in apparel, general merchandise and own FMCG brands will allow for a wider offering to its customers. This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals. RRVL is a subsidiary of Reliance Industries Limited, carrying on the Consumer Supply Chain Business and Consumer Retail Business through its subsidiaries. RRVL reported a consolidated Turnover of Rs 162,936 crore and net profit of Rs 5,447.96 crore for the year ended March 31, 2020.