Subway Inc: Reliance Industries in talks to acquire Subway
Mukesh Ambani, the owner of Reliance Industries, is reportedly in talks with Subway. Subway is a quick-service restaurant chain (QSR). However, it has become rumoured that Mukesh Ambani is planning to buy it for between 1500 and 1860 crores.
Subway’s sales have reportedly decreased recently. As a result, it is through a restructuring process. Subway, on the other hand, does not have a single location in India. On the contrary, each franchise brings in nearly 8% of the total revenue.
In India, the market leader (Dominos) controls roughly 21% of the market. Then there’s McDonald’s, which has an 11 per cent market share, and Subway, which has a 6 per cent market share. However, if the purchase goes through, Reliance Industries will take over Subway, giving Domino’s, McDonald’s, KFC, Burger King, and Starbucks a stiff fight in India.
Despite this, Reliance Industry purchased Just Dial’s 20.97 per cent stock share on July 20. On the BSE, the cost of a 20.97 per cent equity share is around Rs. 1020 per share, according to bulk data.
What are your thoughts on the matter? Will Reliance Industry be successful in acquiring Subway? If that’s the case, will it be able to compete with other market leaders?
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