The €500 Mn – €550 Mn (INR 4,000 Cr – INR 4,500 Cr) worth of deal will mark the exit of Metro Cash and Carry’s loss-ridden wholesale business from India after 19 years of operations.
Reliance Industries has beaten tech giant Amazon and Indian startups Swiggy and Udaan, among others, in the race to acquire German wholesaler Metro’s Indian business, media sources reports. The €500 Mn – €550 Mn (INR 4,000 Cr – INR 4,500 Cr) worth of deal will mark the exit of Metro Cash and Carry’s loss-ridden wholesale business from India after 19 years of operations.
As per reports, Metro Cash and Carry has 31 stores in India and had approached close to 10 companies to acquire its India operations. The company aimed to sell the business by September 2022, for a price between €1.5 Bn to €1.7 Bn but has reportedly settled for less than half of its asking price.
Metro Cash and Carry was incurring losses for years now except in FY18 when it reported net profit for the first time. According to filings accessed by Inc42, in FY21, the German-based wholesaler posted an INR 67.37 Cr net loss while its turnover stood at INR 6,503.25 Cr. Understandably, the selling over of its Indian entity has come on the backdrop of poor financial performance.
Previously, Metro had decided not only to go with the highest bidder but also to seek regulatory approvals, check financial expectations and have its existing employees taken care of.
