Reliance Industries is set to acquire German retailer Metro AG’s cash and carry business in India in a deal worth around €500 million (approximately €500 million). 4,060 crore), industry sources said.
He said the deal includes 31 wholesale distribution centres, land banks and other properties owned by Metro Cash & Carry.
This will help the country’s largest retailer Reliance Retail expand its presence in the B2B segment.
He said that discussions between billionaire Mukesh Ambani-led Reliance Industries and Metro had been going on for the past few months and last week agreed to the proposal of German parent Reliance Retail.
When contacted, both Metro and Reliance Industries declined to comment on the development.
A Reliance spokesperson said, “Our company constantly evaluates various opportunities.
A Metro AG spokesperson said, “We do not comment on market rumors or speculations.
Metro Cash & Carry customers include retailers and grocery stores, hotels, restaurants and caterers (HORECA), corporates, SMEs, companies and institutions.
The B2B segment is considered a low-margin business and in 2014 multinationals like Carrefour exited the country.
In July 2020, e-commerce major Flipkart Group acquired 100 per cent stake in Walmart India Pvt Ltd, which operates Best Price cash-and-carry business.
Other retailers were also in the race to acquire Metro Cash & Carry, including Siam Macro, which operates the Lots Wholesale cash-and-carry trading business under the Lots Wholesale Solutions brand name.
Last month, Siam Macro, part of Thailand’s Charon Pokefund Group, announced its withdrawal from bidding for Metro Cash & Carry India.
Metro AG, which operates in 34 countries, entered the Indian market in 2003.
It has six stores in Bangalore, four in Hyderabad, two each in Mumbai and Delhi and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nashik, Ghaziabad, Tumakuru, Vijayawada. operates. Visakhapatnam, Guntur and Hubli.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, is the holding company of all retail companies under the group.
RRVL had reported a consolidated turnover of approx. 2 lakh crore for the year ended 31 March 2022.
This story has been published without modification in text from a wire agency feed.
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