UAE's Mubadala Confirms $844m Stake Deal In Retail Unit Of Indian Giant Reliance

Mubadala Investment Company, the Abu Dhabi-based sovereign investor, on Thursday announced it will invest AED 3.1 billion ($844 million) into Reliance Retail Ventures Limited (RRVL), a subsidiary of Indian giant Reliance Industries.

Mubadala said its investment will translate into a 1.40 percent equity stake in RRVL on a fully diluted basis.

Abu Dhabi funds in talks with India's Reliance over retail unit deal - sources

Abu Dhabi Investment Authority and Mubadala Investment Company understood to be in discussions with Indian giant

On Wednesday, Arabian Business revealed that Mubadala was in talks on a possible deal.

This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the $1.2 billion investment in Jio Platforms announced earlier this year.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

The investment in Reliance Retail comes as the company has started a transformational digitalisation of small and unorganised merchants and is committed to expanding the network numbering over 20 million businesses.

Khaldoon Al Mubarak, managing director and Group CEO, Mubadala Investment Company (pictured above), said: "We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development."

Mukesh Ambani (pictured above), chairman and managing director of Reliance Industries, said: "I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey."

The transaction is subject to regulatory and other customary approvals.