Post-CCI nod, Reliance Industries, Future Group stocks see strong demand1 min read . Updated: 23 Nov 2020, 03:12 PM IST
CCI on Friday approved the Ril-Future Retail deal, thwarting Amazon's efforts to block the deal
Shares of Reliance Industries (RIL) jumped up to 4 per cent on Monday after the Competition Commission approved the company's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group.
Future Group stocks were also in heavy demand, rising up to 10 per cent.
At 3 pm, RIL stock gained 3 per cent to ₹1,955 on the BSE.
Besides, Future Retail zoomed 9.95 per cent to ₹79 -- its upper circuit limit, Future Lifestyle Fashions gained 9.99 per cent to ₹90.30 and Future Enterprises Ltd shares rose by 4.92 per cent to its highest trading permissible limit for the day at ₹10.45 on the BSE.
The ₹24,713-crore deal that would boost Reliance Industries' fast-growing retail business was announced in August.
In a tweet on Friday, the regulator said it has approved "acquisition of retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited", thwarting Amazon.com's efforts to block the deal.
Deals beyond a certain threshold require approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
Amazon had approached the CCI and the country's market regulator SEBI alleging the deal would violate some pre-existing agreements it had with Future Group.
Last month Amazon won an injunction from a Singapore arbitrator to halt the deal pending arbitration.
While the deal is yet to receive approval of stock exchanges and market regulator SEBI, the three companies are now embroiled in a legal battle at the Delhi High Court over the transaction.
Amazon says its 2019 deal with a Future Group subsidiary included clauses saying it could not sell its retail assets to certain parties, including Reliance.
Future has argued it entered into the deal with Reliance because its retail business was severely hit during the COVID-19 pandemic and it was critical to protect all its stakeholders.
The dispute has put Amazon at odds not just with Future Retail - one of country's top retailers - but also with Ambani's Reliance Group which is fast expanding its e-commerce business and threatening the dominance of the U.S. giant.