InvestorQ : When is the deal between Reliance Retail and Future retail likely to be closed out?
sara Kunju made post

When is the deal between Reliance Retail and Future retail likely to be closed out?

Answer
user profile image
3 months ago


There is no confirmation about the deal getting completed or the timeline. However, the Future Group owned by Kishor Biyani is reportedly in advanced talks to sell a stake in the Future Group to Reliance Industries. As of now, Future group is desperate for capital and for liquidity to help them service their debt. Future group has been struggling with the combination of lockdown in malls and rising debt. The deal will help to create a retail behemoth. Future Retail has 1500 retail stores covering 16 million square feet of retail space while Reliance Retail has 11,784 stores covering 28.7 million square feet. Future Retail also has a partnership with Amazon. The deal will benefit Reliance as it gives their retail arm a big spurt in terms of presence at reasonable valuations. The deal could also be a face saver for the Future group as they have been defaulting on loans. A deal with a cash rich group like Reliance Industries will be like hitting two birds with one stone for Biyani. It gives them the much needed cash in these tough times and prevents an outright default. Secondly, Future group gets access to the digital reach of the Reliance group, which can be vital in taking on the competition from Amazon and Wal-Mart.