The Competition Commission of India (CCI) has rejected an application seeking its nod for acquisition of Future group's Pantaloon brand business by Aditya Birla Nuvo, as the deal still requires passing through the respective company’s board of director’s muster. Aditya Birla Nuvo, part of Kumar Mangalam Birla-led group, through a subsidiary had proposed to acquire Kishore Biyani's fashion apparel business Pantaloon and had sought clearance from CCI for the deal on July 16.
Both entities, according to the Commission, sought approval based on their Memorandum of Understanding (MoU), an interim arrangement, for the proposed deal. Further, these companies are yet to finalize the exact scope of the assets to be acquired and the share entitlement ratio.
As per the plan, Aditya Birla Nuvo would infuse Rs 1,600 crore into its flagship 'Pantaloon' and would acquire a controlling stake in the store chain, which would be later demerged to be listed as a separate entity. As part of the proposed transaction, Aditya Birla Nuvo (ABNL) would subscribe to debentures amounting to Rs 800 crore issued by Pantaloon Retail India (PRIL) and on completion of the demerger process; the debentures would be converted into equity in the demerged entity of the Pantaloon format. Further, Pantaloon’s Rs 800 crore debt would also be taken care-off by ABNL.
If this proposal materializes, ABNL will have multiple brands, store formats and a complete range across all categories - casual wear, ethnic wear, formal wear, party wear and sportswear for men, women and kids. Besides, the proposed acquisition would be in line with ABNL’s strategic intent to be on the top of the league and to create the largest integrated branded fashion player in the country through an extension into the value segment. This acquisition will catapult ABNL to the pole position in the branded fashion space in all the segments with a pan-India presence.
| Company Name | CMP |
|---|---|
| Avenue Supermarts | 3613.70 |
| Aditya Birla Fashion | 288.50 |
| Trent | 6652.45 |
| Electronics Mart Ind | 165.95 |
| Future Retail | 2.41 |
| View more.. | |
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