India’s Reliance Retail to acquire Future Group’s retail, wholesale, and logistics businesses for $3.4 billion

Reliance Retail, India’s largest retail chain, has found a much simpler way to expand its dominant position in the country: Acquire most of the second largest chain’s units.

On Saturday evening (local Indian time), Reliance Retail said it has reached an agreement with Future Group to acquire the latter’s retail and wholesaler business, and its logistics and warehousing business for $3.4 billion.

The announcement today further complicates the future of Amazon and Walmart’s Flipkart in India where e-commerce sill accounts for just 3% of all retail sales. Amazon, which was also in talks to acquire stakes in Future Group, last year bought a tiny portion of Future Group’s business. In January this year, the American e-commerce firm said it had also inked a deal with Future Group to help the Indian firm sell online.

“With this transaction, we are pleased to provide a home to the renowned formats and brands of Future Group as well as preserve its business ecosystem, which have played an important role in the evolution of modern retail in India. We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants and kiranas as well as large consumer brands. We are committed to continue providing value to our consumers across the country,” said Isha Ambani, Director at Reliance Retail, in a statement.

This is a developing story. More to follow…