Reliance Industries subsidiary Reliance retail ventures ltd ( RRVL) on the morning of Thursday has conveyed that they have signed a definitive agreement to acquire Metro AG’s business in India
Reliance retail ventures ltd (RRVL) today signed a definitive agreement with metro AG to acquire a 100% equity stake in metro cash & carry India private limited which operates under the ‘metro india’ brand for a cash consideration of Rs 2850 cr, subject to close adjustments
Through a press release, RRVL have said that through this acquisition Reliance retail will get access to a network of Metro India stores located in the prime location, along with the large base of registered kiranas and other assetable networks
The acquisition of the metro’s India business will further help Reliance retail to increase their physical footprint and the ability to better serve the customers as well as the kiranas by leveraging synergies.
The deal is going through complex regulatory and other customary closing conditions and is expected to be completed by March next year.
Metro AG CEO Stefan Greubel commented. ” With metro India, we are selling a growing and profitable 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 the metro India in the future in this market environment”
RRVL Director Isha Ambani 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. We believe that metro India’s healthy assets combined with our deep understanding of Indian merchants will help offer a differentiated value proposition to small businesses in India ”
Metro Cash and Carry operates 31 wholesale distribution centers across the country, serving business customers only. It sells different types of products ranging from day-to-day items to vegetables to electronics to hotels, restaurants, offices, etc
After the acquisition of the Metro India business Reliance will expand its market share in the organized food and grocery business which currently stands at 20%
India’s retail is a humongous is Rs 60 lakh crore market. Reliance have already decided that it wants to dominate this sector it is only this month that it entered into FMCG with the launch of the brand “independence” for staples, processed foods, and beverages competing with the likes of ITC, TATA and Adani wilmar
.
