Reliance Retail Completes Rs 2,850 Crore Acquisition Of METRO Cash & Carry India

The German retailer in a statement said that the deal includes the sale of all 31 wholesale stores operated by METRO Cash & Carry India and the entire real estate portfolio to RRVL

In December 2022, METRO and RRVL signed a deal for the sale of METRO's wholesale operations in India to Reliance Retail for Rs 2,850 crore.

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METRO AG on Thursday announced that it has completed the sale of its Indian cash & Carry business to Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries Ltd. The German retailer in a statement said that the deal includes the sale of all 31 wholesale stores operated by METRO Cash & Carry India and the entire real estate portfolio (6 store-occupied properties) to RRVL. 

"METRO India will complement Reliance Retail’s retail network in the future," it said.

As per the deal, METRO AG said that "all METRO India stores will continue to operate under the METRO brand during an agreed transition period."

Adding that "for METRO employees and METRO customers, there will be no noticeable changes for the time being."

In December 2022, METRO and RRVL signed a deal for the sale of METRO's wholesale operations in India to Reliance Retail for Rs 2,850 crore. This acquisition will bolster Reliance Retail's already dominant presence in India's rapidly expanding retail industry, considered one of the world's fastest-growing markets.

METRO AG CEO Steffen Greubel said, "With today’s successful closing of the sale, METRO India will open a new chapter in its journey. We are convinced that Reliance as the new owner, with its local expertise, will successfully lead the business into the future."

"In addition to the reduction in net debt already realised in Q1 through the reclassification of the Indian business as “Asset held for sale” (€0.15 billion), cash proceeds of €0.3 billion will further reduce METRO’s net debt (the total effect on net debt is, therefore, more than €0.4 billion) and will support METRO’s sCore strategy implementation," the statement said.

RRVL is the holding company for the retail operations of Reliance Industries. For the financial year ending March 31, 2023, Reliance Retail's revenue from operation was Rs 2.30 lakh crore. The company is focusing to expand its distribution network across geographies as well as a product offering in the Consumer Brands business.

METRO is a leading international food wholesaler, operating in more than 30 countries. In the financial year 2021-22, METRO generated sales of €29.8 billion.