Reliance acquires Hamleys, McDonald’s ends 6-year dispute, and more top news

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McDonald’s India and its estranged partner Vikram Bakshi have ended a six-year-long dispute with an out-of-court settlement. The fast-food chain has acquired full control of Connaught Plaza Restaurants, its master franchisee in northern and eastern India, by acquiring Bakshi’s 50% stake. Financial terms of the deal were not disclosed. Nearly 170 outlets of the Golden Arches chain in the two regions will be temporarily closed even as the future of its 6,500 employees hangs in the balance. Meanwhile, Economic Times says suitors, including the RP-Sanjiv Goenka Group, are lining up to replace Connaught Plaza.

Reliance Brands, a subsidiary of Reliance Industries, is acquiring 259-year-old British toymaker Hamleys for about ?620 crore. Buying out Hamleys, which has 167 stores across 18 countries, will give Reliance Brands a global footprint and help it achieve its lofty target of 30% annual growth over the next decade. Hamleys – whose Chinese owner C Banner International put it on the block in September 2018 – reported a $15.6 million loss in 2017. But despite ceding market share to the likes of Target and Amazon, it continues to be a dominant player in the $11 billion global toy industry.

Video-sharing apps are taking precautionary measures in the wake of a temporary ban on China’s TikTok, Quartz reports. Singapore-based BIGO – which owns live-streaming app BIGO LIVE and video-sharing app LIKE – has 200 Indian employees as well as an AI-backed system monitoring content. China’s Helo, which claims to have 40 million users in India, has purged 160,000 accounts. But these measures aren’t foolproof, with inappropriate content falling through the cracks. The reasons? Incentives for content production, the apps’ tendency to act like publishers, thereby perpetuating biases, and a lack of adequate safeguards, say experts.

The Enforcement Directorate is probing whether Jet Airways violated forex laws while signing a $150 million deal with Etihad in 2014, Business Standard reports. The agreement gave the Gulf carrier a 50.1% stake in Jet Privilege, the venture that runs Jet’s loyalty programme for frequent flyers. An ED official said the transaction was conducted without approval from the government or RBI, mandatory for deals that cross the 49% threshold. Meanwhile, the government has reportedly asked the Serious Fraud Investigation Office to probe Jet and its subsidiaries for fund diversion by promoters.

SpiceJet will offer business class on key domestic routes from May 11. Called SpiceBiz, the new service will initially be available on the Boeing 737s the low-cost carrier leased from Jet Airways. Business class travellers will get the usual amenities – gourmet meals and beverages, priority services, lounge access and higher baggage allowance – but for 30-40% cheaper tickets. GoAir was the first domestic no-frills carrier to introduce business class in October 2008.

Idea of the Day: Feedback is how employees grow, but it has to be given in a compassionate and empathetic manner, says Arianna Huffington, CEO Thrive Global.

“There’s nothing wrong with failure or mistakes. They’re inevitable. But being able to learn from them isn’t.”

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