Indian private equity firm Samara Capital and Amazon have bought Aditya Birla Group-owned 'More', a food and grocery retail chain, for an enterprise value of Rs 4,200 crore.
Samara Capital is acquiring 51% stake while the remaining 49% would be acquired by Amazon. The deal is subjective to the clearance from the Competition Commission of India (CCI).
Under the 'More' brand, Aditya Birla Retail Ltd (ABRL) has a chain of 509 supermarkets and 20 hypermarkets across the country. It is the fourth largest supermarket chain in India.
The acquisition will wipe out the entire debt in ABRL's book. As of March 2018, the debt stood at Rs 4,000 crore.
More complements the plans of Amazon to venture into food retail in India.
After completion of the takeover, both the companies are planning to rapidly expand the retail chain. The Samara-Amazon looks to set up 100-150 stores every year, mostly neighbourhood supermarkets and a few hypermarkets. Currently, they are planning to add 90 stores this fiscal.
More is Amazon's second direct investment in India's brick-and-mortar retail space. Earlier, it acquired 5% stake in department store chain Shoppers Stop for about Rs 180 crore.