New Delhi : In yet another consolidation exercise in the domestic retail sector, Aditya Birla Retail Ltd (ABRL) acquired Jubilant Industries’ hypermarket business in a slump sale all cash deal.
The deal amount was not specified. This is the third consolidation announcement in the retail sector within a fortnight, reports PTI.
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.
Aditya Birla Nuvo, the parent of Aditya Birla Retail, said it will merge Madura Garments Lifestyle Retail Co Ltd with listed subsidiary Pantaloons Fashion & Retail Ltd. Post the merger, Pantaloons Fashion will be renamed Aditya Birla Fashion & Retail Ltd.
In a BSE filing, Jubilant Industries said Aditya Birla 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”. Jubilant’s hypermarket ‘Total Superstore business’ has an aggregate retail footprint of 2.87 lakh sq. ft.
Shares of Jubilant Industries hit a 52-week high on the news. Nearly 90,000 shares have been traded on the NSE so far as compared to its average three-week volume of 44,033 shares. Aditya Birla Group Business Director, Apparel & Retail Business Pranab Barua said: “The acquisition of Total Superstore Business is a good strategic fit for ABRL in terms of its store locations and catchment areas.”
