Mumbai, August 29: Mukesh Ambani-owned Reliance Industries Limited (RIL) on Saturday announced the acquisition of businesses of Kishore Biyani's Future Group for Rs 24,713 crore. With this acquisition, Ambani's company will now own access of 1,800 stores of Future Group, including Big Bazaar, FBB and Easyday. These stores are spread across 420 cities of the country.

"Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore," RIL said in a statement. Reliance Industries Stocks Zoom as Facebook to Invest in Jio Platforms.

Under the acquisition, Future Group would merge certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL) of RRVL. Following this, all the retail and wholesale undertaking of Future Group will be transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL). Jio Investments: From Silver Lake to Facebook, KKR and Mubadala, Reliance Telecom Arm Has Bagged Deals With 6 International Firms Over 2 Months; See Full List And Details.

RRVL Director Isha Ambani said, "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." Adding more, she said, "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."

The deal will put Reliance  in direct competition with e-commerce giant Amazon. Many experts believe that Biyani agreed for the deal after financial loss due to COVID-19 pandemic

(The above story first appeared on LatestLY on Aug 29, 2020 09:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website