Reliance-Future-Amazon's M&A Saga Takes New Twists And Turns

Reliance’s overnight deal to take over futur retail’s key outlets has stunned amazon as it now battles for options

- Krishna Gopalan

₹24‚713 CRORE

SIZE OF THE RELIANCE RETAIL-FUTURE GROUP DEAL

₹17‚000 CRORE

AMOUNT OWED BY FUTURE GROUP TO LENDING BANKS

AT AROUND NOON ON A pleasant day this February, a harried executive of a mall in Amritsar called his CEO. Much as he tried to hold his emotions together, the situation got the better of him. Standing in front of him was a team from Reliance Projects & Property Management Services, a part of the Mukesh Ambani-controlled Reliance conglomerate, who, by contrast, was composed but also displayed some level of urgency to wrap up some paperwork.

“They were holding the termination letter and also a new agreement letter,” narrates the CEO, who was pulled out of a meeting by his team member. The offer was quite irresistible—all the outstanding rental payments due from Future Retail, a Kishore Biyani-promoted company, would be cleared in a couple of days and just a formal sign-off was needed. The mall owner had a new tenant in the form of Reliance.

“We have never seen anything move so quickly. It was a little strange to see a pre-printed letter with our name,” he says in a voice that was still incredulous. It marked a momentous transformation when Reliance Projects & Property Management Services swiftly took complete charge of several stores that once housed Big Bazaar, the chain that was considered the destination for India’s large middle class.