InvestorQ : Is it true that Reliance has agreed to extend continued support to Future group till the Amazon issue is sorted out?
Aashna Tripathi made post

Is it true that Reliance has agreed to extend continued support to Future group till the Amazon issue is sorted out?

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Aditi Sharma answered.
4 weeks ago
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In a major relief to the Future group, its employees and the lending banks; Reliance Industries agreed to extend operational support to Future Retail for another 6 months till the Amazon legal tussle is fully sorted out. The ideas is to prevent the collapse of the Future group even as the Rs.24,713 crore merger deal awaits clearance from the NCLT. The deal had got stuck after Amazon objected to the sale claiming first right of refusal.

NCLT is expected to announce its final ruling by 15 March. Hence Mukesh Ambani has also extended his internal deadline for the completion of the deal by another 6 months to factor in the legal delays. RIL felt it was not possible to get all regulator approvals by May due to the ongoing dispute between Amazon and Future Group.

Some of Future Retail’s lease agreements for stores have already been transferred to Reliance. These include lease agreements in Tier-1 and Tier-2 cities. Meanwhile, existing staff of Future Group are already undergoing training to be ready to work under Reliance Retail. RIL can walk away from the deal if FEL fails to get all regulatory approvals on time.

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