Reliance Industries’ shares rose nearly 4 per cent after fair trade regulator Competition Commission of India (CCI) cleared the oil-to-telecom conglomerate’s proposed acquisition of the retail, wholesale, logistics and warehousing businesses of Future Group. On the BSE, the Reliance Industries stock jumped as much as 3.71 per cent to Rs 1,970 apiece at the strongest level recorded during the day. The Rs 24,713-crore deal that would boost Reliance Industries’ fast-growing retail business was announced in August.
In a tweet on Friday, the fair trade regulator said it has approved “acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited”.
Deals beyond a certain threshold require approval of the CCI, which keeps a tab on unfair business practices across sectors.
“The Transferor Companies consists of several listed and unlisted companies, primarily engaged in retail, wholesale, logistics and warehousing businesses,” the notice said. “These businesses operate on a pan-India basis, and include retail operations across segments such as food and grocery, apparel, footwear and accessories, other merchandise, etc.”
Meanwhile, e-commerce major Amazon has opposed the deal between Future Group and Reliance.
Last year, Amazon bought 49 per cent stake in one of Future Group’s unlisted firms, with the right to buy into the listed flagship Future Retail Ltd. Amazon has claimed that its contract with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Reliance.
At 12:00 pm, Reliance Industries shares traded 3.45 per cent higher at Rs 1,965, outperforming the benchmark S&P BSE Sensex index, which was up 0.2 per cent.