Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, on Thursday signed definitive agreements to acquire 100 percent equity stake in Metro Cash and Carry India Pvt Ltd, which trades under the ‘Metro India’ brand, for a cash consideration of Rs 2,850 crore.
“Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, has today signed definitive agreements to acquire a 100 per cent equity stake in Metro Cash & Carry India for a total cash consideration of Rs 2,850 crore, subject to closing adjustments ,” a joint statement said.
Metro India, a wholly owned subsidiary of Mero AG, started operations in India in 2003 as the first company to introduce a cash-and-carry format in the country and now operates 31 large format stores in 21 cities with approximately 3,500 employees. The multi-channel B2B self-service wholesaler has reached more than 3 million B2B customers in India and 1 million of them are frequent buyers through the store network and eB2B app.
Metro India serves Kiranas and other small businesses and merchants. In FY 2021-22 (FY ending September 2022), the company generated revenue of Rs 7,700 crore, its best sales performance since entering the market in India.
This acquisition gives Reliance Retail access to a broad network of retail outlets, retail and institutional buyers, and a strong supply channel. It will also contribute to Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and purchasing opportunities.
“The acquisition of Metro India aligns with our new trading strategy to build a unique model of shared prosperity through active collaboration with small traders and enterprises,” said Isha Ambani, Director of Reliance Retail Ventures Limited. player in the Indian B2B market and has built a solid multi-channel platform that delivers a strong customer experience.”
Through this acquisition, Reliance Retail will continue to expand its reach across the country to serve the entire spectrum of Indian society – from households and kiranas to merchants, and from hotels, restaurants and catering to small and medium-sized enterprises and institutions.
“With Metro India, we are selling a growing and profitable wholesaler at the right time in a very dynamic market. We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead METRO India into the future in this market environment,” said Dr. Steffen Greubel, CEO of Metro AG.
“On the one hand, this benefits both our customers and our employees, for whose loyalty and performance we are deeply grateful, and on the other hand, it allows Metro to focus on accelerating growth in the remaining country portfolio .”
The transaction is subject to certain regulatory and other customary closing conditions and is expected to close in March 2023.
disclaimer:Network18 and TV18 – the companies that operate news18.com – are controlled by the Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Read all the latest business news here