Business Line reported that the Competition Commission of India has given its approval to the acquisition of Future group's Pantaloon brand business by Aditya Birla Nuvo. Aditya Birla Nuvo Ltd, through a subsidiary, had proposed to acquire a majority stake in Pantaloon retail format business from Kishore Biyani led Future group and the concerned parties had sought CCI clearance for the deal on July 16th.
The CCI has held in its order dated December 21st, "The Commission is of the opinion that the proposed combination is not likely to have an adverse effect on competition in India." This order has come on an application filed on October 8th. The proposed combination relates to the acquisition of business of Pantaloon Retail (India) by Aditya Birla Nuvo through the latter's subsidiary, Peter England Fashions and Retail.
The Future Group had announced that Aditya Birla Nuvo would pump in INR 1,600 crore into its flagship brand Pantaloon, and would acquire a majority stake in the store chain. This was to be later demerged to be listed as a separate entity. Even after the proposed sale, the existing shareholders of Pantaloon Retail, including its promoters, will continue to own shares in the demerged entity.