Retail in Asia

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Birlas may merge retail arms with Pantaloon Fashion

In a move to attract foreign investment in its retail business, the Aditya Birla group is likely to merge its two loss-making unlisted entities — Aditya Birla Retail, which runs the retail chain More, and Madura Fashion & Lifestyle — with Pantaloons Fashion & Retail, a listed entity.

The Pantaloons board was likely to meet as early as next week to take a call on the merger proposal, in the works for nine months, said sources familiar with the development.

The merged entity would get tax breaks because of losses suffered by Aditya Birla Retail and Madura Fashion, sources added.