New Delhi: In a major consolidation between two homegrown retailers, Kishore Biyani-led Future group will hive off its retail business to merge with Bharti Retail.
The board of Future Retail, at its meeting held on Monday, approved the demerger of retail business of Future Retail and merge it into Bharti Retail, Future Retail said in a filing to the BSE.
Further, as part of the deal, retail infrastructure business of Bharti Retail will also be hived off from the company to be merged into Future Retail, it added.
Bharti Retail will issue one equity share of Rs 2 each for every share of Rs 2 held in Future Retail in consideration of the merger of Future's retail business into it.
On the other hand, Future Retail will issue one fully paid up equity share of Rs 2 each to Bharti Retail shareholders for every share of Rs 2 held in it in relation to the merger of the retail infrastructure business.
Bharti Group has been looking for a full-fledged retail play, keeping its options open for partnership with its erstwhile cash and carry partner Walmart.
However, the two parted ways in 2013 with the American retail giant deciding to focus only on wholesale business in India amid restrictions over FDI in multi-brand retail.
Bharti Retail runs over 210 Easyday stores across different formats in India, mostly concentrated in the northern region.
Future Group also has been making move to consolidate its business after selling majority stake in Pantaloons to Aditya Birla Retail in 2012.
It has a chain under different formats, including hypermarkets under Big Bazaar and supermarkets under Food Bazaar brand.