- 14 Oct 2022
- ICICIdirect Research
Reliance Retail remains sole bidder for wholesale operations of Metro AG
RELIANCE - 3019 Change: -22.60 (-0.74 %)News:
As per media reports , Reliance Industries is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India. Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centers across the country, serving business customers only. Charoen Pokphand Group Co, which had earlier shown interest in acquiring Metro AG is no longer pursuing the same leaving only Reliance Retail that is interested in acquiring the German firm’s cash-and-carry business. As per certain industry participants, a deal could value the business at $1-1.2 billion including debt. The company had reported revenue worth Rs 6500 crore with EBITDA of Rs 118 crore as on FY21.
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Reliance Retail has been aggressively expanding its presence in the general trade segment by supplying groceries and fast moving consumer goods. If Reliance Retail is able to acquire Indian cash and carry wholesale operations of Metro AG, it will help boost the retail expansion plans that already is spread across modern retail, stocking up local kiranas and e-commerce grocery deliveries. Metro Cash & Carry India, which primarily serves the licensed retailers and traders in the country with groceries and other daily consumable items would help Reliance Retail further consolidate its backend supply chain.
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Positive.