NEW DELHI: German retailer METRO AG announced on Thursday the completion of the sale of its Indian Cash & Carry business trust retail Ventures Ltd (RRVL), which owns the retail empire of Trust Industries Ltd.
The deal includes all 31 hypermarkets operated by METRO Cash & Carry India and the entire property portfolio (6 properties used by stores) to RRVL, Metro AG said in a statement.
“METRO India will complement Reliance Retail’s retail network in the future,” it said.
According to the agreement, “All METRO India stores will continue to operate under the METRO brand during an agreed transition period.”
However, it also said: “There will be no noticeable changes for METRO employees and METRO customers for the time being.”
METRO and RRVL announced a deal in December 2022 for the company led by billionaire Mukesh Ambani to acquire the wholesale business of a German company in India for 2,850 crore.
The deal will help Reliance Retail strengthen its leading position in India’s vast retail sector, which is one of the fastest growing markets in the world.
Steffen Greubel, CEO of METRO AG, commented on the development: “With today’s successful sale, METRO India will open a new chapter on its way. We are convinced that Reliance, as the new owner, will successfully lead the business into the future with its local expertise.”
He also thanked METRO’s Indian employees for their hard work and dedication over the past 20 years and wished them a new chapter.
METRO will continue to expand its growth momentum and take further steps to achieve its mid- and long-term goals.
“In addition to the reduction in net debt already realized in the first quarter from the reclassification of the Indian business as an asset held for sale (EUR 0.15 billion), cash proceeds of EUR 0.3 billion will reduce METRO’s net debt further reduce (the total effect on net debt is thus more than 0.4 billion euros) and will support the implementation of METRO’s sCore strategy,” the statement said.
RRVL is the holding company for Reliance Industries’ retail operations.
For the year ended March 31, 2023, Reliance Retail’s operating revenue was 2.30 lakh crore.
The company is focused on expanding its distribution network in all regions as well as expanding its product offering in the consumer brand business.
METRO is a leading international food wholesaler, operating in more than 30 countries. In the 2021/22 financial year, METRO generated sales of EUR 29.8 billion.
The deal includes all 31 hypermarkets operated by METRO Cash & Carry India and the entire property portfolio (6 properties used by stores) to RRVL, Metro AG said in a statement.
“METRO India will complement Reliance Retail’s retail network in the future,” it said.
According to the agreement, “All METRO India stores will continue to operate under the METRO brand during an agreed transition period.”
However, it also said: “There will be no noticeable changes for METRO employees and METRO customers for the time being.”
METRO and RRVL announced a deal in December 2022 for the company led by billionaire Mukesh Ambani to acquire the wholesale business of a German company in India for 2,850 crore.
The deal will help Reliance Retail strengthen its leading position in India’s vast retail sector, which is one of the fastest growing markets in the world.
Steffen Greubel, CEO of METRO AG, commented on the development: “With today’s successful sale, METRO India will open a new chapter on its way. We are convinced that Reliance, as the new owner, will successfully lead the business into the future with its local expertise.”
He also thanked METRO’s Indian employees for their hard work and dedication over the past 20 years and wished them a new chapter.
METRO will continue to expand its growth momentum and take further steps to achieve its mid- and long-term goals.
“In addition to the reduction in net debt already realized in the first quarter from the reclassification of the Indian business as an asset held for sale (EUR 0.15 billion), cash proceeds of EUR 0.3 billion will reduce METRO’s net debt further reduce (the total effect on net debt is thus more than 0.4 billion euros) and will support the implementation of METRO’s sCore strategy,” the statement said.
RRVL is the holding company for Reliance Industries’ retail operations.
For the year ended March 31, 2023, Reliance Retail’s operating revenue was 2.30 lakh crore.
The company is focused on expanding its distribution network in all regions as well as expanding its product offering in the consumer brand business.
METRO is a leading international food wholesaler, operating in more than 30 countries. In the 2021/22 financial year, METRO generated sales of EUR 29.8 billion.
