InvestorQ : Has Reliance extended the last date for the Future group deal once again?
Sam Eswaran made post

Has Reliance extended the last date for the Future group deal once again?

Moii Chavate answered.
1 year ago

That is correct. Reliance Retail Ventures, the unlisted retail arm of Reliance Industries, extended the long-stop date for completion and consummation of its Rs.24,713 crore merger deal with the Future Group by another 6 months. That is because, the Future group is currently engaged in a bitter legal battle with Amazon over the legitimacy of the deal with Reliance since it Amazon purportedly had the first right of refusal for such deals.

The original deadline for the transaction was that it had to be completed by 31 March 2021 but now considering the circumstances it has been extended to September 2021. The Rs.24,713 crore deal between RRVL and the Future group was signed way back in August 2020. RRVL has the right to extend the deal time line and in exercise of this right the company has decided to extend the timeline by another six months.

As it stands, the deal is on hold till the final judgment comes from the Supreme Court and that could take another couple of months. Amazon wants the deal to be annulled but the government has a larger worry about the thousands of workers and contractors who will be rendered jobless by the decision. At the same time, Amazon is also using this as a war by proxy to delay a significant advantage to Reliance in the online retail business in India.