Reliance Retail Ventures (RRVL), Reliance Industries’ retail business, has agreed to buy Metro Cash & Carry India (Metro India) for Rs. 2,850 crore. Metro India is a wholly-owned subsidiary of the German corporation Metro AG and operates 31 large format stores under the brand name ‘Metro’ in 21 locations across the country. It serves the business-to-business (B2B) market and has over 3 million customers.
“The acquisition will further strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities,” said a joint statement.
Reliance Retail will acquire 100% of Metro India’s shares under the terms of the transaction.
According to a joint announcement from the two companies, the transaction is expected to completion by March 2023, subject to regulatory approvals. According to the company’s Q2 FY23 filings, Reliance Retail operates 16,617 outlets across the country. During the quarter, it recorded a 36% year-on-year growth in net profit to 2,305 crore, with revenue of 64,396 crore.
Metro India, on the other hand, reported a revenue of 7,700 crore in the fiscal year 2021-22 (ending September 2022), its best performance since the business began operations in 2003.
“The acquisition will further strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities,” said a joint statement.
The acquisition of Metro India will provide Reliance Retail with access to 31 large format stores with a multi-channel platform, as well as 3 million B2B clients, 1 million of whom are frequent consumers.
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