Private Equity Firm Carlyle In Talks To Invest $2B In India's Reliance Retail: Report

private equity firm carlyle in talks to invest 2b in indias reliance retail report

The Indian retail segment is attracting more attention from institutional investors and big tech companies, and Washington D.C.-based private equity firm Carlyle Group Inc (NASDAQ: CG) is the latest to express interest. 

What Happened: The alternative asset management company is seeking a $2 billion investment opportunity in Reliance Industries Ltd.’s retail subsidiary, according to Indian financial daily Mint.

Carlyle’s $2 billion offer is its first foray in the Indian retail segment; if finalized, it would also be its largest investment in an Indian company, Mint noted.

The deal under discussion reportedly involves both Reliance Retail’s e-commerce as well as brick-and-mortar ventures.

Why Does It Matter: Reliance has been in the spotlight for some time. According to a Bloomberg report on Thursday, e-commerce titan Amazon Inc (NASDAQ: AMZN) is in talks to acquire $20 billion worth of stake in the same retail business. Reliance stock price shot up 7% on the Bombay Stock Exchange after the report, but the group dubbed it as “speculative.”

Reliance is led by Indian billionaire Mukesh Ambani and has a market cap of over INR 15.4 trillion (approximately $210 billion).

Silver Lake last week announced a $1 billion investment in Reliance retail for 1.75% stake. Facebook Inc. (NASDAQ: FB) and Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) earlier this year invested in another Reliance subsidiary, Jio Platforms.

Price Action: Carlyle shares closed 0.4% lower at $25.17 on Friday.

© 2020 Benzinga does not provide investment advice. All rights reserved.

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