Reliance Eyes Overseas Retail Acquisition

March 15, 2007	(Be the first to rate this story!)  Loading ...
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Reliance Industries Ltd’s retail venture, Reliance Retail, is in talks with Carrefour, the world’s second largest retailer, to acquire its international trading arm. According to highly placed sources, the deal for the French firm could be anywhere between a whopping $8-10 billion.

But, when Carrefour’s spokesperson, Beatrice Verder, was contacted, he simply denied commenting anything about the deal while Reliance spokesperson was tightlipped about the negotiation being underway.

Sources also added that Reliance’s acquisition will give it an added advantage over firms like Bharti, AV Birla group and the Wadias. And interestingly, Bharti and the Wadias too had talks with Carrefour in the past, but that didn’t materialize.

It is widely believed that Reliance has reserved around $ 21 billion for global acquisitions. The deal which is splashed in all news papers will be Reliance Retail’s first acquisition of overseas firm, which will help the company in sourcing products from overseas market.

However, it is said about Carrefour that it is selling loss-making firms and utilizing that amount in buying international retail chains. Transgourmet, joint venture firm between Greman-based firm Rewe and Switzerland-based Coop, had bought Carrefour’s Prodirest in 2005.

After selling the firm, Carrefour bought Penny Market in Germany.

It is also believed that French firm Carrefour has been showing interest in entering Indian retail industry, but it’s the Indian government’s regulations that is restricting its plan from entering Indian retail industry.

Reliance, which has recently entered into the India retail sector with its stores called “Reliance Fresh”, plans to invest approximately around $5.5 billion to boost its retail business.

News Published Under:   Retail Market in India |

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