The deal with Mukesh Ambani’s Reliance and Kishore Biyani’s Future Group has been canceled after a long legal battle and many controversies. Reliance Industries has officially announced this. With this announcement, the ongoing legal battle between e-commerce company Amazon and Future Group is also expected to end over the deal.
What Reliance said: Reliance Industries said in a communication to the stock exchanges that Future Retail Limited (FRL) and other Future Group companies have conveyed the outcome of the meetings held for approval of the deal. According to this, the deal has been accepted by a majority of shareholders and unsecured lenders but the offer has been rejected by secured creditors. In this situation the deal cannot be extended.
Deal done in 2020: Let us tell you that in August 2020, Future Group had announced a merger agreement of Rs 24,713 crore with Reliance Retail Ventures Limited (RRVL), a Reliance Group company. Under this deal, Reliance Retail was to acquire 19 Future Group companies operating in retail, wholesale, logistics and warehousing segments.
Amazon had a hurdle: However, since the announcement of the deal, giant e-commerce company Amazon was opposing it. Amazon has opposed the deal in various court cases, saying the deal violates the investment agreement it had with the Future Group.
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Future Group is in debt: This deal was considered very important for Future Group, which is facing debt crisis. At the beginning of the week, separate meetings were convened by the respective companies of the Future Group to seek approval from shareholders and lenders on the deal. There were two types of views on the deal in the meetings. Secured lenders rejected it. Now Reliance Industries has canceled the deal in view of this development.