InvestorQ : Can you tell me about the NCLT allowing Reliance to seek approval for Future group deal?
diksha shah made post

Can you tell me about the NCLT allowing Reliance to seek approval for Future group deal?

Answer
image
2 months ago
Follow

What has happened is that the NCLT Mumbai Bench has permitted Reliance Industries to go ahead and seek the approval of creditors for the proposed merger deal between Reliance Retail and the Future group. The deal has been hanging fire for over a year now as Amazon appears to be keen on stalling the deal just to prevent a consolidation of retail in India. Now, NCLT has correctly set aside objections raised by Amazon as being premature.

While the case may continue, there was no reason for Reliance to hold up approvals. Reliance Retail will be reorganizing the companies ahead of the Future Retail deal and for that they need to seek approval of creditors and shareholders. Even Future group needs to seek similar approval for the RRVL deal. The deal entails RRVL acquiring Future group for Rs.24,713 crore and over last one year, Amazon has been the big roadblock to the deal.

2 Views