Metro Cash & Carry is purchased by Reliance Retail for Rs 2,850 crore.

 

On December 22, Reliance Retail Ventures Limited (RRVL), a division of Reliance Industries Ltd, signed binding agreements to pay Rs 2,850 crore in cash for a 100% ownership investment in Metro Cash and Carry India Pvt Ltd (Metro India).

As the country's first company to offer the cash-and-carry business model, Metro India, a fully owned subsidiary of Mero AG, began operations in India in 2003. With over 3,500 employees, it currently operates 31 large format stores across 21 cities. Through its retail network and eB2B app, the multi-channel B2B cash-and-carry wholesaler reaches over 3 million B2B customers in India, 1 million of whom are regular purchasers.

Kiranas and other small businesses and merchants are served by Metro India. The company earned sales of Rs 7,700 crore in the fiscal year 2021–22 (FY ending September 2022), which was its greatest sales performance since entering the Indian market.

Reliance Retail gains access to a large network of retailers, institutional and retail buyers, and a reliable supply chain with this transaction. By utilising synergies and economies across supply chain networks, technological platforms, and sourcing capabilities, it will also improve Reliance Retail's physical store footprint and its capacity to better serve customers and small businesses.

"The purchase of Metro India is consistent with our new commerce strategy, which focuses on creating a special model of shared prosperity through active partnership with small businesses, "Reliance Retail Ventures Limited Director Isha Ambani stated. "A pioneer and major participant in the Indian B2B sector, Metro India has created a solid multi-channel platform that provides excellent customer service.

With the assistance of this acquisition, Reliance Retail will continue to expand its reach throughout the nation in order to serve the entire spectrum of Indian society, from households and kiranas to merchants, from hotels, restaurants, and catering to small and medium companies and organisations.

"With Metro India, we are selling an expanding and lucrative wholesale company at the ideal time in a very dynamic market. Reliance, we are confident, is a competent partner who can successfully guide METRO India into the future in this market scenario, stated Dr. Steffen Greubel, CEO of Metro AG.

This will help both our customers and our workers, whose commitment and performance we are very appreciative of, on the one hand, and will allow Metro to concentrate on driving growth in the remaining national portfolio, on the other.

The acquisition is scheduled to close by March 2023 but is subject to a number of regulatory and customary closing conditions.

Disclaimer: Before making any investment decisions based on the preceding material, we urged consumers to consult with recognized specialists.