Reliance Retail says it will acquire Future Group without delay
Reliance Retail on Sunday announced that it would complete the acquisition of Future Group without any delay.
Reliance Retail Ventures Limited (RRVL), while responding to an interim order passed by the Emergency Arbitrator said that it will acquire all of the assets and businesses of Future Group as per all the obligations of the Indian law.
“RRVL has entered into the transaction for acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law,” the Reliance Retail said in a statement.
“RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay,” it added.
Reliance Retail’s statement came in response to the arbitration proceedings invoked by Amazon under a shareholders’ agreement with the promoters of Future group.
To give you some context, Amazon on Sunday won an interim order on Sunday against Future Group selling its retail business to Reliance Industries Ltd for ₹24,713. Amazon had agreed to purchase 49% of one of Future's unlisted firms last year with the right to buy into flagship Future Retail business after a period of three years to 10 years. The company dragged the Future Group to arbitration after the indebted company signed a pact to sell its retail, wholesale, logistics and warehousing units to Mukesh Ambani's Reliance Retail.
Passing an interim award in favour of Amazon, V K Rajah asked the Future group to put the deal on hold and said that the deal cannot go through until it finally decides the matter, sources with direct knowledge of the development said.
"We welcome the award of the Emergency Arbitrator. We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process," the Amazon spokesperson said in a statement to PTI.