InvestorQ : What does Reliance plan to do by buying the US department store, Debenhams?
diksha shah made post

What does Reliance plan to do by buying the US department store, Debenhams?

Answer
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swati Bakhda answered.
1 month ago


In a significant move, Reliance Industries is now looking to acquire Debenhams, a British retailer that operates departmental stores across the UK. The valuations are yet to be be finalized and the finer details of the deal are yet awaited.

A couple of years earlier, Reliance Retail Ventures had bought Hamleys, the globally renowned and respected British toy store for Rs.620 crore in cash. Lazard Brothers is coordinating the sale of Debenhams stake, which is currently under administration in UK.

This buyout is in line with the overall strategy of Mukesh Ambani to bet on digital and retail platforms to drive the future of the Reliance Group. This is a sharp departure from their traditional strategy which was predominantly built around oil, refining and petchem.

This also gives an outlet for the capital raising that Reliance has done. RIL has recently raised Rs.13,000 crore by selling a stake in Reliance Retail Ventures to Silver Lakes partners and to KKR at a valuation of $59 billion and more such deals may be in the offing.