BackFuture Group, Bharti Retail in talks for partnership
A multi-structured deal on the basis of share swap is being worked out between the two partners, say sources
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New Delhi: Future Group and Bharti Retail are understood to be in advanced stage of talks to merge their businesses with a deal expected to be announced early next month.
The news was first published by the Economic Times.
A multi-structured deal on the basis of share swap is being worked out between the two partners, after which Kishore Biyani-led Future Group will become the majority partner, according to people with knowledge of the matter.
Bharti Retail’s Easyday supermarkets, which deal in day-to-day food and grocery items, are likely to be merged with Future Consumer Enterprise, the people said. On the other hand, Bharti Retail’s hypermarkets under the Easyday Market brand will be merged with Future Retail, they added.
“In return, Bharti will get shares in companies wherever their businesses reside in Future Group companies," one of the people said.
When contacted, a Future Group spokesperson denied any “such development happening with anybody". A Bharti Group spokesperson said: “We do not comment on market speculations."
Bharti Group had initially hoped for a full-fledged retail play, keeping its options open for partnership with its erstwhile cash and carry partner Walmart. However, the two parted ways in 2013 with the American retail giant deciding to focus only on wholesale business in India amid restrictions over foreign direct investment in multi-brand retail.
Bharti Retail runs over 210 Easyday stores across different formats in India, mostly concentrated in the northern region. Future Group has been making move to consolidate its business after selling a majority stake in Pantaloons to Aditya Birla Retail in 2012. It has a chain under different formats, including hypermarkets under the Big Bazaar brand and supermarkets under the Food Bazaar brand.
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