9 July, 2019
On April 15, 2019, CCI approved the acquisition of 7.30% of the equity share capital of Future Retail Limited (‘FRL’) by Future Coupons Limited (‘FCL’). [1]
FCL is in the business of making and distributing coupons, vouchers, cards, smart cards, prepaid and loyalty cards and business-to-business wholesale trading of fabrics. FRL is a public listed company and operates stores under multiple retail formats such as hypermarkets, supermarkets and home segments with different brand names including Big Bazaar, Big Bazaar Genext, Hypercity, FBB, Easy day.
Both FCL and FCRPL are “promoter group” entities and are owned and controlled by Mr. Kishore Biyani (‘Promoter Group’). The Promoter Group owns 46.92% of the equity share capital of FRL and following this transaction would increase that ownership to 50.79% of FRL’s equity share capital.
CCI unconditionally approved the transaction, noting that the Promoter Group would continue to be the single largest shareholder in FRL and there would be no change in control. Accordingly, the transaction was found to have no effect on competition.
[1] Combination Registration No. C-2019/03/653.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
