Indian retail chains merge to cut costs, raise capital

Mumbai

INDIAN grocery chain Future Retail extended its five-day rising streak after announcing a merger with billionaire Sunil Mittal's Bharti Retail to reduce costs and get cheaper loans.

Two companies will be formed as a result of the merger, Future said in a statement on Monday. Future Retail will hold the combined store operations, comprising of 570 stores across India. Future Enterprises will own the infrastructure and investment assets of both companies. The two new entities will be run by a committee, Future group vice chairman Kishore Biyani said.