Mumbai, August 29: Reliance Retail Ventures Ltd. (RRVL), a subsidiary of Mukesh Ambani's Reliance Industries Limited, on Saturday announced the decision to acquire Future Group’s retail, wholesale, logistics and warehousing businesses for Rs 24,713 crore. The latest deal between RRVL and Kishore Biyani's Future Group has been carried on a slump sale basis.

Informing about the latest development, RIL said in a statement, "Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore."

With the latest acquisition, Reliance Retail will now have the access of Future Group's Big Bazaar, FBB, Easyday, Central, and Foodhall formats. The acquisition will enable RRVL to acquire Future Group's over 1,800 stores spread over 420 cities in India. It is to be known that Future Group houses leading retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall and bargain clothing chain Brand Factory.

Under the acquisition, Future Group would merge certain companies carrying on the aforesaid businesses into Future Enterprises Limited (FEL) of RRVL. Ahead of selling retail assets to the retail subsidiary of RIL, Future Retail Ltd, Future Consumer, Future Lifestyle Fashions, Future Supply Chain and Future Market Networks will be merged into FEL. Following this, all the retail and wholesale undertaking of Future Group will be transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL).

RRVL Director Isha Ambani said, "With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which has played an important role in the evolution of modern retail in India."

Adding more, she said, "We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country."

Apart from the retail and wholesale transfer to RRFLL, the logistics and warehousing undertaking is also being transferred to RRVL under the deal. RRFLL is proposing to invest Rs 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 per cent of post-merger equity holding and Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75 per cent of the issue price, adds the Reliance statement.

This is not the first time Future Group’s CEO Kishore Biyani sold his assets. Earlier on September 30, Future Group’s debt rose to Rs 12,778 crore. In 2012, Biyani sold his most valuable asset Pantaloons Retail to Aditya Birla group for Rs 1,600 crore after grappling with an equally heavy debt of Rs 12,000 crore. He had also sold Future Capital to Warburg Pincus for Rs 4,250 crore.