InvestorQ : Can we now assume that the merger deal between Reliance Retail and Future group is finally through with the SEBI approval?
diksha shah made post

Can we now assume that the merger deal between Reliance Retail and Future group is finally through with the SEBI approval?

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rhea Babu answered.
5 months ago
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Let me put it this way, the legal battle is still on. What has happened on 21 January is that SEBI has given its approval to the deal despite Amazon requesting SEBI not to approve the deal pending the final decision by the Delhi High Court. The SEBI stand is that the approval is based on the facts of the case and will be conditional subject to court approval.

It puts an end to the uncertainty as after dragging along for nearly 5 months, the Reliance Retail deal with Future Group may finally see the light of day. However, as I said earlier, it is a conditional approval that SEBI has given to the deal. The two companies can start the process of Future Group's scheme of arrangement as well as the proposed sale of assets to Reliance Retail.

The Rs.24,713-crore deal was signed in August last year. However, Amazon had objected to the deal on the grounds that since it had a stake in Future Coupons, it had to be given the first right of refusal as per the agreement with the Future Group. However, Future group has all along denied that any such privilege was granted to Amazon. The matter is still pending in the Delhi High Court.

SEBI has put a caveat to the deal that the pending litigation before the Delhi High Court and arbitration proceedings by Amazon should be specifically mentioned while they were seeking shareholders approval and also for NCLT approval. It is not clear if Amazon would still pursue the case considering FEMA restrictions involved in taking a stake in a retail play.

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