Kishore Biyani-led Future Lifestyle is in advanced stages of negotiations with Pepe Jeans to acquire its local arm and merge with its own Lee Cooper portfolio to create one of the country's biggest casual wear brands. Pepe Jeans India is a fully owned subsidiary of Barcelona-based Pepe Jeans Group, which counts LVMH-owned L Catterton and Lebanese investment firm M1Group as majority shareholders. In May this year, L Catterton bought a 10 per cent stake in Future Lifestyle that owns department store formats including Central and Brand Factory, and more than a dozen brands including Indigo Nation and Lee Cooper. Pepe that operates more than 200 branded outlets in India - most of them franchisee run - was founded by Indian-origin siblings Arun, Nitin and Milan Shah in London in 1973, but has changed hands since. In February 2015, Pepe Jeans and Hackett London - both part of the Pepe Jeans Group - were bought by L Catterton and M1 from Torreal Funds, Arta Capital and L Capital Europe. Spanish entrepreneur Carlos Ortega has a 20 per cent stake in the global clothing company where he is also the CEO.