The $344 million deal will help the Reliance conglomerate, run by billionaire Mukesh Ambani, strengthen its dominant position in Indian retail.
In December last year, it was announced that RRVL had signed definitive agreements to acquire a 100 percent equity stake in the company for a total cash consideration of Rs 2,850 crore ($344 million).
✔️ Reliance is the country's biggest brick-and-mortar retailer with over 16,600 stores, and a strong wholesale unit would further deepen its operations in India.
✔️ Metro started operations in India back in 2003 as the first company to introduce a cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with around 3,500 staff.
These stores sell products such as fruits and vegetables, general grocery, electronics, household goods and apparel to business customers like hotels, and restaurants as well as offices and companies, small retailers and kirana stores.
Metro India generated sales of ₹7,700 crore ($930 million) - its best since its entry into India - in the financial year ended September 2022.
Its retail Reliance effectively operates 3 large different business models - B2C via its physical stores; digital businesses (Jio Mart, Ajio among others); and a B2B business. It is the largest organized retailer in the key segments of grocery, fashion and lifestyle and consumer electronics.
Speaking about this investment, Isha Ambani, Director of Reliance Retail Ventures Ltd., said, the acquisition of Metro India aligns with Reliance’s new commerce strategy of “active collaboration with small merchants and enterprises."
"With Metro India, we are selling a growing and profitable wholesale 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 Metro India into the future in this market environment,”
said Steffen Greubel, CEO of Metro AG.
With the acquisition of Metro India, Reliance Retail will continue to build reach across the country to serve the entire spectrum of Indian society i.e. households, kiranas and merchants, HoReCa (hotels, restaurants, and catering) and small and medium enterprises and institutions, and be the partner of choice, the Reliance’s statement said.
Sources: Indian Express, Mint
