Through the acquisition Reliance Retail to get access to a wide network of METRO India stores located in prime locations across key cities
Reliance Retail Ventures Limited (RRVL) has signed definitive agreements to acquire a 100 percent equity stake in METRO Cash & Carry India Pvt. Ltd. (METRO India) for a total cash estimation of Rs.2,850 crore, subject to closing adjustments. RRVL is a subsidiary of Reliance Industries Ltd.
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, a strong supplier network, and some of the global best practices implemented by METRO in India.
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 a sale of Rs.7,700 crore (926 million Euros), its best sales performance since its market entry into India.
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 complete by March 2023.
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 stakeholders in the retail ecosystem.
Speaking about this investment, Isha Ambani, Director, Reliance Retail Ventures Limited, said, “The acquisition of METRO India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises. METRO India is a pioneer and key player in the Indian B2B market and has built a solid multi-channel platform delivering a strong customer experience. We believe that METRO India’s healthy assets combined with our deep understanding of the Indian merchant/ kirana ecosystem will help offer a differentiated value proposition to small businesses in India.”
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. This is one hand will benefit both our customers and our employees, for whose loyalty and performance we are very grateful, and on the other hand, will enable METRO to focus on accelerating growth in the remaining country portfolio.”
[With Inputs from IANS]
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