Reliance extends deadline for proposed acquisition of Future Retail
Category: #retail  By Pankaj Singh  Date: 2021-04-06
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Reliance extends deadline for proposed acquisition of Future Retail

Reliance Industries Limited’s retail business, Reliance Retail Ventures, has reportedly extended the deadline for its proposed acquisition of the retail & wholesale business, Future Retail, by 6 months.

As per a regulatory filing, Future Retail has revealed the extension of the ‘Long Stop Date’ from 31st March to 30th September 2021 by Reliance Retail. Future Enterprises has reportedly stated that, pursuant to the scheme provisions and other transaction documents, Reliance Retail has in exercise of the right given in accordance to the agreement, extended the timeline.

In August 2020, Future Group inked a deal to sell its retail and wholesale business to Reliance Retail at 247.13 billion ($3.38 billion). The deal had gained the approval of the Competition Commission of India as well as the Securities & Exchange Board of India. The scheme of arrangement is apparently being considered by the NCLT (National Company Law Appellate Tribunal).

Apart from this acquisition deadline extension, the legal battle between Future Group and Amazon is expected to come before the Supreme Court on 27th April. During its earlier hearing, the court asked the NCLT to not pass any final order. The e-Commerce giant has contested the proposed deal and alleged that Future Group has violated the terms of the non-compete contract. The company also has dragged the Indian retail conglomerate company to arbitration at SIAC (Singapore International Arbitration Centre) for violating the contract by entering a deal with Reliance.

On 18th March 2021, the Delhi high court had imposed a monetary penalty on the Indian company for breaking the arbitration order in October 2020. The recent news for the deadline extension happened after the high court of Delhi provided a reprieve to the company to a court order which froze its assets and prevented it from selling to Reliance.

In March 2021, Reliance Industries has offered operational support to Future Retail to mitigate its financial crisis.

Source credit:

https://www.retail-insight-network.com/news/reliance-future-acquisition-extension/



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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