SEBI approves Reliance Industries acquisition of Big Bazaar and other businesses of Future Group

The Securities and Exchange Board of India (SEBI) has approved the previously announced INR 247.13 billion ($3.39 billion) acquisition of Big Bazaar and other businesses of Future Group by Reliance Retail Ventures (RRVL), a subsidiary of Mukesh Ambani‘s Reliance Industries.

In its letter of approval, SEBI imposed various conditions in compliance with the Composite Scheme of Arrangement. The securities and commodity regulator has also referred to the concerns raised by e-commerce giant Amazon, which had taken a minority stake in Future Group in the past.

Reliance Retail Ventures to acquire Big Bazaar and other businesses of Future Group. Photo courtesy of Viraj Bhuptani/Wikimedia Commons.

SEBI, in a statement, said: “Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme.

“Company shall ensure that proceedings pending before SEBI against the entities part of the promoter/promoter group or are directors of the companies involved in the scheme, should be highlighted in the scheme document filed before National Company Law Tribunal (NCLT).”

As per the deal signed in August 2020, Reliance Retail Ventures agreed to acquire the retail and wholesale business and the logistics and warehousing business from Future Group.

Currently, Future Group owns the Big Bazaar hypermarket chain, EasyDay Club and Heritage Fresh small store neighborhood retail chains, and others.