Despite exhortations by Amazon, markets regulator SEBI has approved the deal between Future Group and Reliance Industries. SEBI, in a letter issued on Wednesday, approved the deal subject to a number of conditions in the Composite Scheme of .
Updated Jan 20, 2021 | 23:05 IST
The Securities and Exchange Board of India in the letter stated that the Company shall ensure that as a part of the notice to shareholder seeking their approval on the scheme. SEBI approves Future Group-Reliance Industries deal
New Delhi: The Securities and Exchange Board of India (SEBI) on Wednesday granted approval to the deal between Kishore Biyani-led Future Group and Reliance Retail, an arm of the Mukesh Ambani-led Reliance Industries Limited. The market regulator, in its letter which approved the deal, listed a number of conditions in accordance to the Composite Scheme of Arrangement. Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme, the regulatory body stated.
Reliance-Future deal: What’s at stake?
The outcome of the Reliance-Future deal is likely to determine the future roadmap of India s lucrative retail sector. While Future Group s Kishore Biyani is hopeful that regulators will rule in favour of the deal, Amazon seems to be in no mood to give up the fight. Here s what s at stake:
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UPDATED: January 11, 2021 16:18 IST
The Reliance-Future deal was halted a few month ago after Amazon secured an arbitration order against it. (Photo: Reuters)
A day ago, Future Group’s chief executive Kishore Biyani said he is “disappointed” with Amazon.com Inc for blocking the deal with Reliance to sell its retail business. Biyani added that the group expects a swift regulatory approval for its Rs 24,713 crore deal to sell retail assets to Mukesh Ambani’s Reliance.
The Delhi high court recently upheld the proposed merger of Future Retail Limited (FRL) with Reliance Retail Ventures Limited (RNRL), following a challenge by Amazon. It has also allowed Amazon to continue opposing the merger in appropriate legal forums.
New Delhi: With an epic battle of billionaires for supremacy in one of the world’s most prolific markets and a pandemic-propelled surge in online shopping in the background, India’s nearly trillion-dollar retail market is hoping to touch 85 per cent of the pre-COVID business in the first half of the new year.
In a year when the COVID-19 carnage ripped apart the retail business, circa 2020 will best go down for the unravelling of the war between Jeff Bezos, the world’s wealthiest man, and richest Indian Mukesh Ambani for pre-eminence in the booming market that is estimated to reach USD 1.3 trillion by 2025.