Abu Dhabi funds in talks with India’s Reliance over retail unit deal – sources

“The two UAE-based funds are in talks with the Reliance Group for investing in Reliance Retail Ventures Ltd (RRVL), though no decision (on investment) has been taken yet,” investment banking sources, who wished not to be identified because of confidentiality issues, told Arabian Business.

When contacted, the ADIA spokesperson told Arabian Business that the company “does not comment on rumours about deals”.

A Reliance Group spokesperson also added that “they don’t comment on market speculations, till a deal is signed”.

Arabian Business has also contacted Mubadala.

Industry analysts said global investors could be vying for a piece of India’s burgeoning $800 billion annual retail market that is expected to swell to $1.3 trillion in the next few years.

Both ADIA and Mubadala previously invested in Jio Platforms Ltd, which houses Reliance Group’s digital businesses, in June in two separate deals.

While ADIA has invested $752 million, Mubadala has invested $1.2 billion in Jio Platforms to acquire 1.16 percent and 1.85 percent stakes respectively.

Investment banking sources said decisions on possible investments by ADIA or Mubadala are expected soon, as the Mukesh Ambani-led group is in a hurry to close the fundraising deals for its retail arm in order to focus its energy on building capacities and strategies to take on Amazon in India.

Talks about possible investment deals with ADIA and Mubadala have gathered pace after Reliance Group announced investments by two major private equity funds within a space of seven days.

Reliance said on Wednesday that General Atlantic was investing about $498 million, while last week it was announced that global investment firm KKR was investing about $752 million.

Both General Atlantic and KKR had also made investments in Jio Platforms, along with ADIA, Mubadala and some of the social media and tech biggies such as FaceBook and Google.

The Public Investment Fund of Saudi Arabia has also made investments in Jio Platforms to acquire a 2.32 percent stake.

Mukesh Ambani

Reliance Retail Limited, a subsidiary of RRVL, is among India’s largest and fastest growing retail businesses, serving close to 640 million footfalls across its approximate 12,000 stores nationwide.

RRVL, the holding company of all the retail companies under the RIL Group, reported a consolidated turnover of $21.7 billion and net profit of $726.4 million for the year ended March 31.