New Delhi: German Retailer Metro AG on Thursday announced the completion of the sale of its India Cash & Carry business Reliance Retail Ventures Limited (RRVL), whose retail empire Reliance Industries Limited
Metro AG said in a statement that the deal includes all 31 wholesale stores operated by Metro Cash & Carry India and the entire real estate portfolio (6 store-occupied properties) for RRVL.
“Metro India will complement the retail network of Reliance Retail in the future,” it said.
As per the deal, “all METRO India stores will continue to operate under the METRO brand during an agreed transition period.”
However, it also added, “There will be no noticeable change for Metro employees and Metro customers for the time being.”
METRO and RRVL announced a deal for the acquisition of the German firm’s wholesale operations in India by the billionaire Mukesh Ambani-led firm in December 2022 for Rs 2,850 crore.
The deal will help Reliance Retail consolidate its dominant position in India’s vast retail sector, one of the fastest growing markets globally.
Commenting on the development, Stefan Grebel, CEO of Metro AG, said: “With today’s successful completion of the sale, Metro India will open a new chapter in its journey. We are confident that Reliance as the new owner, with its local expertise Will successfully lead the business into the future.”
He thanked Metro’s Indian employees for their hard work and commitment over the last 20 years and wished them a new chapter.
Metro will continue to increase its growth momentum and take more steps to achieve its medium and long term ambitions.
In addition to the net debt reduction already achieved in Q1 through the reclassification of the Indian business as an “asset held for sale” (€0.15 billion), cash proceeds of €0.3 billion further reduced METRO’s net debt. (the total impact on net debt, therefore exceeds €0.4 billion) and will support the implementation of METRO’s sCore strategy,” the statement said.
RRVL is the holding company for the retail operations of Reliance Industries.
In the financial year ending March 31, 2023, Reliance Retail’s revenue from operations was Rs 2.30 lakh crore.
The company is focusing on expanding its distribution network across geographies as well as product offerings in the consumer brand business.
METRO is a leading international food wholesaler, operating in over 30 countries. Metro projects sales of 29.8 billion euros in the fiscal year 2021/22.
Metro AG said in a statement that the deal includes all 31 wholesale stores operated by Metro Cash & Carry India and the entire real estate portfolio (6 store-occupied properties) for RRVL.
“Metro India will complement the retail network of Reliance Retail in the future,” it said.
As per the deal, “all METRO India stores will continue to operate under the METRO brand during an agreed transition period.”
However, it also added, “There will be no noticeable change for Metro employees and Metro customers for the time being.”
METRO and RRVL announced a deal for the acquisition of the German firm’s wholesale operations in India by the billionaire Mukesh Ambani-led firm in December 2022 for Rs 2,850 crore.
The deal will help Reliance Retail consolidate its dominant position in India’s vast retail sector, one of the fastest growing markets globally.
Commenting on the development, Stefan Grebel, CEO of Metro AG, said: “With today’s successful completion of the sale, Metro India will open a new chapter in its journey. We are confident that Reliance as the new owner, with its local expertise Will successfully lead the business into the future.”
He thanked Metro’s Indian employees for their hard work and commitment over the last 20 years and wished them a new chapter.
Metro will continue to increase its growth momentum and take more steps to achieve its medium and long term ambitions.
In addition to the net debt reduction already achieved in Q1 through the reclassification of the Indian business as an “asset held for sale” (€0.15 billion), cash proceeds of €0.3 billion further reduced METRO’s net debt. (the total impact on net debt, therefore exceeds €0.4 billion) and will support the implementation of METRO’s sCore strategy,” the statement said.
RRVL is the holding company for the retail operations of Reliance Industries.
In the financial year ending March 31, 2023, Reliance Retail’s revenue from operations was Rs 2.30 lakh crore.
The company is focusing on expanding its distribution network across geographies as well as product offerings in the consumer brand business.
METRO is a leading international food wholesaler, operating in over 30 countries. Metro projects sales of 29.8 billion euros in the fiscal year 2021/22.