Reliance Retail Ventures Ltd (RRVL) has successfully completed the acquisition of German retailer METRO AG’s Indian cash & carry business, including all 31 wholesale stores and the entire real estate portfolio (6 store-occupied properties) for an equity valuation of approximately €0.3 billion, (Rs 2,700 crore).
The deal was announced in December 2022 by billionaire Mukesh Ambani-led firm Reliance Industries Ltd (RIL). RRVL holds the retail empire of RIL.
Through the sale, METRO AG will achieve a transaction EBITDA gain of approximately €150 million (around Rs 1,345 crore) and cash proceeds of €0.3 billion, further reducing its net debt of more than €0.4 billion and will support its sCore strategy implementation, a statement from the company said.
The agreement will assist Reliance Retail in solidifying its hegemonic position in India’s massive retail industry, one of the world’s fastest-growing marketplaces.
As per the deal, all METRO stores in India will continue to operate under the same brand name until an agreed transition period. There will be no changes for METRO employees and METRO customers for now.
Dr Steffen Greubel, CEO of METRO AG, said in a statement that METRO India will complement RRVL’s retail network, and Reliance, with its local expertise, will successfully lead the company in the future.
METRO will work to attain its mid- and long-term goals by building on its current growth pace. The company is concentrating on growing a product line in the Consumer Brands segment and its distribution network across countries.