Reliance Industries announced a joint venture (JV) with New York based DE Shaw to build financial services business in India. Media reports indicate that initially, the JV will float a private equity fund with an initial investment of up to Rs. 1,000 crore.
As expected, Reliance was advised by the Mumbai offices of AZB & Partners with a team led by Partner Shuva Mandal. Covington & Burling also advised Reliance with Washington based corporate Partner Ralph Voltmer. Ralph has advised Reliance on a series of deals over the last few years.
DE Shaw was advised by the Delhi offices of AZB where Partners Ajay Bahl and Vinati Kastia led the transaction. The team also consisted of Senior Associates Ritika Rathi, Satyajit Gupta, Aparna Mehra and Bharat Bahadur.
Debevoise & Plimpton corporate law Partners Michael J Gillespie in New York and Geoffrey P Burgess in London advised D E Shaw.
After the Ambani brothers settled the dispute and ended the non-compete agreement, the elder brother Mukesh Ambani is free to enter almost any sector. Mukesh Ambani has now ventured into the financial services space where younger brother Anil already has a presence through ADAG company Reliance Capital. ADAG's financial services firm has a strong presence in stockbroking, mutual fund, and life and general insurance.
This joint venture will incorporate the DE Shaw group’s investment and technology expertise with Reliance’s operational knowledge and extensive presence across India to offer a comprehensive array of financial services to the Indian marketplace.
The D. E. Shaw group is a global investment and technology development firm with more than 1,300 employees and approximately $20 billion in aggregate investment capital.
Recently, AZB has been advising Reliance Industries in all the big transaction. AZB advised Reliance on $1.3 billion Shale gas deal and the $7.2 billion ‘transformational’ deal with British Petroleum .