CCI Approves Reliance Retail's Acquisition Of METRO Cash & Carry India

In December last year, it was announced that Reliance Retail had signed definitive agreements to acquire a 100 per cent equity stake in the company for a total cash consideration of Rs 2,850 crore

The deal includes 31 wholesale distribution centres, land banks, and other assets owned by METRO Cash & Carry. ( Image Source :Getty )

India's fair trade regulator, the Competition Commission of India (CCI), on Tuesday said it has approved Reliance Retail Venture's acquisition of German firm METRO AG's wholesale operations in India. Reliance Retail Ventures Ltd (RRVL) is a subsidiary of Mukesh Ambani-led Reliance Industries Ltd (RIL), on the other hand METRO Cash & Carry India is engaged in the wholesale operations in India.

In December last year, it was announced that Reliance Retail Ventures had signed definitive agreements to acquire a 100 per cent equity stake in the company for a total cash consideration of Rs 2,850 crore.

According to the sources, the deal includes 31 wholesale distribution centres, land banks, and other assets owned by METRO Cash & Carry. This is going to help Reliance Retail, the country's largest retailer, expand its presence in the B2B segment.

C-2023/02/1000 Commission approves acquisition of METRO Cash and Carry India Private Limited by Reliance Retail Ventures Limited.#CCIMerger #Mergers #MergerAndAcquisition pic.twitter.com/d6FFJYfmEB

— CCI (@CCI_India) March 14, 2023

In a tweet on Tuesday, the regulator said it has cleared the "acquisition of METRO Cash and Carry India Pvt Ltd by Reliance Retail Ventures Ltd." The fair trade regulator has also given its nod for the "acquisition of 100 per cent of equity share capital of L&T Infrastructure Development Projects Ltd and Kudgi Transmission Ltd, by Epic Concesiones Pvt Ltd and Infrastructure Yield Plus II (affiliates of Edelweiss Group), respectively", according to another tweet.

L&T Infrastructure Development Projects Ltd (L&T IDPL) is involved in the business of development, operation, and maintenance of infrastructure projects.

Epic Concesiones Pvt Ltd (ECPL) is wholly-owned by Infrastructure Yield Plus II (IYP II), an alternative investment trust (AIF) of Edelweiss group. Kudgi Transmission Ltd is into developing a transmission system required for evacuation of power.

Deals beyond a certain threshold have to be approved by CCI, which keeps a tab on unfair business practices. 

Meanwhile, the government has invited applications for 17 posts, including for additional director general and deputy director general, at the Competition Commission of India (CCI) on a deputation basis, the PTI reported. The CCI, which comes under the Ministry of Corporate Affairs (MCA), keeps a tab on anti-competitive practices in the marketplace and also works towards promoting fair trade practices.