Future Group stocks & RIL shine; Future Retail, Future Lifestyle Fashions lock in at upper circuit

After Competition Commission of India (CCI) gave a go-ahead for the RIL-Future Group deal, the shares of companies belonging to Future Group locked in at their respective upper circuits on Monday. RIL also gained by 2.72 per cent.

Last year, Amazon had bought a 49 per cent stake in one of Future Group's unlisted firms, Future Coupons Ltd, giving it the right to buy into flagship business Future Retail Limited.

According to Amazon, its contract with FRL has barred transactions with outside companies by the latter including RIL. Subsequently, with the RIL-Future Group mega-deal being announced, Amazon had moved to Singapore International Arbitration Centre (SIAC) in October. SIAC had passed an interim order asking Future Group to hold its plans of selling its retail business to RIL on October 25.

Further to this, Amazon wrote to the market regulator SEBI, stock exchanges and CCI, urging them to take into consideration the decision by SIAC as it is a binding order.

As CCI approved the acquisition after checking all legalities, it came as a setback to Amazon but as positive news for RIL and Future Group.

The proposed Rs 24,713 crore acquisition by RIL of retail, wholesale, logistics, and warehousing businesses of Future Group has pending customary approvals of SEBI and National Company Law Tribunal (NCLT) towards which, both the parties have currently started the required procedures to get approvals from lenders, suppliers, and shareholders as it will culminate in clearance from NCLT.