Indian regulator Securities and Exchange Board of India (SEBI) approved Reliance Retail’s (RRVL) acquisition of Future Retail on Wednesday after Amazon had earlier requested SEBI not to okay the deal. Indian stock exchange BSE granted a ‘no adverse observation’ report on the listing or de-listing requirements and the company can file the acquisition with the National Company Law Tribunal (NCLT). SEBI approved the deal with some riders – Future Enterprises should highlight that 74.2% of its business value post amalgamation of all the group companies is getting transferred to RRVL and that RRVL and Fashion Lifestyle Ltd do not intend to list post the scheme; that any future disputes, complaints, actions shall be brought to the notice of shareholders prior to NCLT’s approval and a few other riders. The approval by SEBI now brings the $3.4bn deal a stone’s throw away from fruition with Amazon’s efforts all but in vain.
Future Retail’s 5.6% 2025s were down 0.9 to 81.63, yielding 11.5%.
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