Reliance Retail plans to acquire foreign retail firm
Reliance Industries` retail venture, Reliance (Q, N,C,F)* Retail, is planning to acquire a foreign retail firm, reports Business Standard. The company is reportedly in talks with a dozen overseas firms for an acquisition. There is also speculation that Reliance is in talks with French retail distribution company- Carrefour for acquiring its supply chain business. A top Reliance team, which has so far confined its activities to small acquisitions in India, recently visited the US and the UK. The team reportedly held discussions with a dozen companies, mostly tier-II or smaller firms like Coles & Myers and J Sainsbury. Sources close to the development said RIL was keen on outright acquisition and not a strategic tie-up, which some companies had wanted.
RIL has already earmarked Rs 270 billion for its retail business. A large chunk of this money, plus around Rs 225 billion from the sale of its treasury stock, could be used for the buy-out. RIL has also been looking for targets within the country, in addition to its recently-concluded acquisition of Adani Retail for over Rs 1 billion. RIL runs its retail venture through its wholly-owned subsidiary Reliance Retail, which currently has 71 stores under the Reliance Fresh brand name. The shares of the company closed at Rs 1,285.05, down by Rs 41.85, or 3.15% at the BSE. The total volume of shares traded was 873,493. (Wednesday)
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