Aditya Birla Retail buys Jubilant's hypermarket business

12 May '15

2 min read

Aditya Birla Retail has acquired Jubilant Industries' hypermarket business in a slump sale deal. The acquisition marks another consolidation exercise in the domestic retail sector, according to media reports.

This is the third consolidation announcement in the retail sector within a fortnight. Earlier this month, Aditya Birla Group merged its apparel businesses into a Rs 5,290-crore entity named Aditya Birla Fashion and Retail.

A day after Aditya Birla's merger announcement, Kishore Biyani-led Future Group said it will take control of Bharti Retail in a multi-tier all-stock deal worth Rs 750 crore to create a Rs 15,000-crore behemoth.

Jubilant Industries Ltd surged 10 per cent in trade today to hit its fresh 52-week high of Rs 163.90, after it informed BSE of the sale.

In a BSE filing, Jubilant Industries said Aditya Birla Retail will acquire "four hypermarket stores in Bengaluru, India, along with certain specified assets and liabilities, including dedicated employees, contracts, licences, permits, consents and approvals related to Jubilant Agri and Consumer Products Ltd, a wholly-owned subsidiary of Jubilant Industries".

"The transaction is expected to be completed within four months, subject to the necessary statutory, regulatory and other approvals, including approval of the Competition Commission of India and the shareholders of the company," the filing added. (SH)

Fibre2fashion News Desk - India

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