Categories: Business

CCI clears Reliance’s 2850 Cr buy of Metro’s local business

Competition Commission of India said that it has cleared Reliance Industries Ltd’s Rs 2,850 crore acquisition of the Indian business of German retailer Metro AG. The deal, announced nearly three months ago, will help Reliance strengthen its wholesale format and cement its position as the biggest player in India’s burgeoning retail industry with stores spanning electronics, groceries and fashion.

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Metro’s Performance in this Financial Year:

Metro has been active in the Indian market since 2003 and reported sales of about Rs 7,700 crore for the financial year ended September 2022. It operates 31 stores in 21 cities and is mostly a supplier to restaurants and smaller businesses. The German retailer had said in its first quarter earnings statement that it sees a transaction gain in EBITDA terms of around 150 million euros ($160.49 million) from the deal.

Reliance’s Retail Expansion:

Retail Ventures Ltd (RRVL), a subsidiary of the oil-to-telecom conglomerate, signed definitive agreements to acquire a 100 per cent equity stake in Metro Cash & Carry India Pvt Ltd for a total cash consideration of 2,850 crore as the conglomerate run by billionaire Mukesh Ambani seeks to strengthen its dominant position in India’s mammoth retail sector.

RIL 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.

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Piyush Shukla

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