German retailer METRO AG on Thursday announced the completion of the sale of its Indian cash & Carry business to Reliance Retail Ventures Ltd (RRVL), which holds the retail empire of Reliance Industries Ltd.
The deal includes all 31 wholesale stores operated by METRO Cash & Carry India and the entire real estate portfolio (6 store-occupied properties) to RRVL, said Metro AG in a statement.
"METRO India will complement Reliance Retail’s retail network in the future," it said.
As per the deal, "all METRO India stores will continue to operate under the METRO brand during an agreed transition period."
However, it also added, "For METRO employees and METRO customers, there will be no noticeable changes for the time being."
METRO and RRVL in December 2022 announced a deal for the acquisition of German firm's wholesale operations in India by billionaire Mukesh Ambani-led firm for Rs 2,850 crore.
The deal will help Reliance Retail strengthen its dominant position in India's mammoth retail sector, which is one of the fastest-growing markets globally.
Commenting on the development METRO AG CEO Steffen Greubel said: "With today’s successful closing of the sale, METRO India will open a new chapter in its journey. We are convinced that Reliance as the new owner, with its local expertise, will successfully lead the business into the future."
He also thanked METRO's Indian employees for their hard work and commitment over the past 20 years and wished them for a new chapter.
METRO will continue to build on its growth momentum and take further steps to achieve its mid- and long-term ambitions.
"In addition to the reduction in net debt already realised in Q1 through the reclassification of the Indian business as “Asset held for sale” (€0.15 billion), cash proceeds of €0.3 billion will further reduce METRO’s net debt (the total effect on net debt is, therefore, more than €0.4 billion) and will support METRO’s sCore strategy implementation," the statement said.
RRVL is the holding company for the retail operations of Reliance Industries.
For the financial year ending March 31, 2023, Reliance Retail's revenue from operation was Rs 2.30 lakh crore.
The company is focusing to expand its distribution network across geographies as well as a product offering in the Consumer Brands business.
METRO is a leading international food wholesaler, operating in more than 30 countries. In the financial year 2021/22, METRO generated sales of €29.8 billion