Thursday, December 22, 2022

Reliance would pay Rs 2,850 crore to purchase Metro India

Reliance to buy Metro India for Rs 2,850 crore

 

MUMBAI: The two businesses made the announcement on Thursday that Reliance Industries (RIL) had agreed to acquire Metro Cash & Carry India for Rs 2,850 crore. The Indian subsidiary of the German wholesaler Metro is Metro Cash & Carry.


Metro's exit from the world's fifth-largest economy will be marked by the agreement with RIL. In 2003, Metro became the first company to establish a cash-and-carry business model in India. It currently employs approximately 3,500 people and operates 31 large format stores in 21 Indian cities. The transaction has been handled by RIL's subsidiary, Reliance Retail Ventures.


Reliance Retail will gain access to Metro India's prime stores, large base of registered kiranas and other institutional customers, and robust supplier network as a result of the acquisition. One million of Metro's over three million institutional customers are frequent purchasers. Metro India achieved its best sales performance since entering the country with sales of Rs 7,700 crore for the fiscal year that ended September 30, 2022.


By leveraging synergies and efficiencies across supply chain networks, technology platforms, and sourcing capabilities, the acquisition will further strengthen Reliance Retail's physical store footprint and capacity to better serve consumers and small merchants. More than are run by Reliance Retail.


16,500 stores in India and partnerships with more than two million retailers in the grocery, electronics, apparel, pharmacy, lingerie, home and furniture, beauty, and personal care industries.


“We are selling a growing and profitable wholesale business with Metro India at the right time in a very dynamic market. Steffen Greubel, CEO of Metro AG, stated, "We are convinced that we have found a suitable partner in Reliance who is willing and able to successfully lead the company into the future in this market environment." This in one hand will help both our clients and our representatives, for whose dedication and execution we are extremely thankful, and then again will empower Metro to zero in on speeding up development in the leftover nation portfolio."


It is anticipated that the transaction will be completed by March 2023, subject to regulatory and other customary closing conditions.

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