Reliance to buy Metro AG’s India business for €500 million

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 were 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 evaluates various opportunities on an ongoing basis.” A Metro AG spokesperson said, “We do not comment on market rumours 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% stake in Walmart India Pvt. Ltd., which operates the Best Price cash-and-carry business.

Other retailers were also in the running to acquire Metro Cash & Carry, including Siam Macro, which operates the Lott Wholesale cash-and-carry trading business under the Lott Wholesale Solutions brand name.

Last month, Siam Macro, part of Thailand’s Charoen 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.