In a major acquisition, e-commerce giant Amazon and private equity firm Samara Capital have acquired Aditya Birla Group’s (AB Group) food and grocery retail chain ‘More’. Amazon and Samara Capital together will buy the retail arm of Aditya Birla Retail Limited (ABRL) at an enterprise value of Rs 4,200 crore, CNBC TV18 reported quoting unidentified sources.
Samara Capital will acquire 51% of the new entity, the report said, while the remaining 49% will be held by Amazon. The entity’s operations are likely to be headed by Pranab Barua, heads the retail and apparel vertical of the AB Group, it added.
ABRL’s More is the fourth-largest supermarket chain in the country after Future Group’s Big Bazaar, Reliance Retail and D-Mart. The investment in the Aditya Birla Group’s retail chain is Amazon’s second direct investment in India’s offline retail space after acquiring Shoppers Stop in September last year. The company had acquired 5% in the department store chain for Rs 180 crore.
Amazon has till date invested Rs 25,220 crore ($3.84 billion) as part of the $5-billion commitment made by Founder Jeff Bezos for the Indian market. Last month, Amazon had infused a fresh capital of Rs 2,800 crore into two of its Indian business units.