InvestorQ : Is it true that the Reliance / Future group merger is now called off?
Rutuja Nigam made post

Is it true that the Reliance / Future group merger is now called off?

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3 weeks ago
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For all practical purposes, the Reliance and Future group merger deal has now become pointless. With secured creditors rejecting the Reliance / Future deal, Reliance Retail Ventures has decided to opt out of the deal. It has been one of the most tumultuous deals and has gone through highs and lows over the last 2 years. After the Amazon fiasco, the endgame started after Reliance started taking over Future stores against lease rents due.

The only option for the Future group now is to go for group insolvency as it leaves the shareholders of the group and the lenders with nothing to really fall back upon. While lenders are taking Future group to bankruptcy court, it may be a case of too little, too late. The Biyani family has cut its stake in all Future group companies. While Future group can blame Amazon for this fiasco, the problems at the group had started long before that. The future group and the bankers only have themselves to blame for this state of affairs.

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