InvestorQ : What happens to the RIL / Future group merger, now that the Delhi High Court has approved the merger?
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What happens to the RIL / Future group merger, now that the Delhi High Court has approved the merger?

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ishika Banerjee answered.
4 weeks ago
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On Monday, the Delhi High Court upheld the proposed merger that had been announced between Future Enterprises Limited with Reliance Retail Ventures back in September 2020. However, the High Court has simultaneously allowed Amazon to oppose the merger in the appropriate legal forums within the contours of the Indian legal system.

The High Court had observed in its ruling that the merger of Reliance Retail Ventures and Future Enterprises, as approved by their respective boards, was not in violation of any statutory legal provisions. Hence there were no genuine legal grounds for the High Court to object to entertain any objections to the merger.

The Competition Commission of India or CCI has already cleared the transaction from a market competition standpoint. It may be recollected that the US based Amazon had challenged the deal on the grounds that as a 49% shareholder in Future Coupons Private Limited, the deal cannot happen without giving Amazon the right of first refusal.

The mega retail merger worth Rs.24,713 crore was intended to be a symbiotic benefit to both the parties. On the one hand it will expand the footprint of Reliance Retail Ventures across India in a quantum leap giving them huge physical presence to back up their digital initiatives. For the Future Group, the deal saved them from an almost inevitable default.

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