Mukesh Ambani’s Reliance Industries on Saturday announced the acquisition of the retail, wholesale, logistics and warehousing businesses of Kishore Biyani’s Future Group for Rs 24,713 crore. The acquisition was done through the company’s subsidiary Reliance Retail Ventures.

Reliance Retail will now have access to close to 1,800 outlets of Future Group’s Big Bazaar, Easyday, Central, and Foodhall stores, which are spread across 420 cities in India.

“Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of INR 24,713 crore,” the company said in a statement.

The deal will help Reliance Retail accelerate and provide “support to millions of small merchants in increasing their competitiveness and enhance their income during these challenging times,” the company added.

The acquisition is being done as part of the scheme in which Future Group is merging certain companies carrying on the aforesaid businesses into Future Enterprises Limited. The transaction had reportedly been in the works for months, according to NDTV.

As part of the deal, the retail and wholesale undertaking businesses are being transferred to Reliance Retail and Fashion Lifestyle Limited, a wholly-owned subsidiary of Reliance Retail Ventures. Besides this, the logistics and warehousing undertaking is being transferred to RRVL.

The Reliance Retail and Fashion Lifestyle Limited also proposes to invest about Rs 1,200 crore in the preferential issue of equity shares of Future Enterprises to acquire 6.09% of post-merger equity.

“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,” said Isha Ambani, director, Reliance Retail Ventures. “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.”

Future Group Chief Executive Officer Kishore Bayani said the deal takes into account the interest of all its stakeholders including lenders, shareholders, creditors, suppliers and employees “giving continuity to all its businesses”, Mint reported. “As a result of this reorganisation and transaction, Future Group will achieve a holistic solution to the challenges that have been caused by Covid and the macro economic environment,” he added.

Reliance Retail’s expansion came days after the Reliance Retail Ventures Limited acquired a majority stake in online pharmacy Netmeds for Rs 620 crore.