Reliance Retail to buy Metro's India unit for about $344 mln

Future Retail

21/12/2022 22:05

Dec 22 (Reuters) - India's Reliance Retail Ventures said
on Thursday it had agreed to buy German retailer Metro AG's
 B4B.DE  Indian unit for 28.5 billion rupees ($344 million) as
it makes aggressive strides in the retail industry.
    The deal will help the Mukesh Ambani-backed company to
strengthen its wholesale format and cement its position as the
biggest player in India's burgeoning retail industry, with
stores spanning electronics, groceries and fashion.
    Ambani is also competing with fellow billionaire Gautam
Adani in a race to buy India's debt-laden Future Retail Ltd
 FRTL.NS .
    Metro, which sold parts of its Belgian operations earlier
this month, said it was expecting a gain of around 150 million
euros ($159.15 million) from the sale of its India business. 
    Metro has been active in the Indian market since 2003 and
reported sales of about 926 million euros for the financial year
ended September 2022. It operates 31 stores in 21 cities and is
mostly a supplier to restaurants and smaller businesses.  
    "Due to the market dynamics a sizeable investment would be
required to further grow the business," Metro Chief Executive
Officer Steffen Greubel said. 
    He added that the divestiture "will enable Metro to focus on
accelerating growth in the remaining country portfolio."
    The companies expect the deal to close by March 2023.
($1 = 0.9425 euros)
($1 = 82.8800 Indian rupees)
 (Reporting by Gokul Pisharody in Bengaluru; Editing by Anil
D'Silva)
 ((Gokul.Pisharody@thomsonreuters.com;))