Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of Reliance Industries Ltd, today signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India Pvt Ltd. (‘METRO India’) for a total cash consideration of Rs 2,850 crore, subject to closing adjustments, as per an exchange filing.
METRO India started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with about 3,500 employees.
The multi-channel B2B cash & carry wholesaler has reach to over 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and eB2B app.
METRO India has established itself as a trusted partner for kiranas and other small businesses and merchants. In the financial year 2021/22 (FY ended September 2022), METRO India generated sales of Rs 7700 crore (€ 926 million), its best sales performance since its market entry into India.
Through this acquisition, Reliance Retail gets access to a wide network of METRO India stores located in prime locations across key cities, a large base of registered kiranas and other institutional customers, strong supplier network and some of the global best practices implemented by METRO in India.
The acquisition will further strengthen 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 sourcing capabilities.
The symbiotic relationship will create greater value for all stake holders in the retail ecosystem.
Dr. Steffen Greubel, CEO of METRO AG, said, “With METRO India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. 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."
With the acquisition of METRO India, Reliance Retail will continue to build reach across the country to serve the entire spectrum of Indian society i.e. households, kiranas and merchants, HoReCa and small and medium enterprises and institutions, and be the partner of choice, and enable win-win opportunities for producers, brand companies, and global suppliers.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to be completed by March 2023.
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