Reliance Industries is set to acquire German retailer Metro AG’s Cash & Carry business in India in a deal estimated at around €500. The Reliance-Metro deal includes 31 wholesale distribution centers, land banks, and other assets owned by Metro Cash & Carry. This is going to help Reliance Retail, which is India’s largest retailer, expand its presence in the B2B segment.
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RIL to buy the German Company Metro’s Cash and Carry business in India- Key Points
- Mukesh Ambani-led Reliance Industries and Metro discussions were going on for the past few months and last week the German parent firm agreed to the offer from Reliance Retail.
- Metro Cash & Carry’s customers include retailers and Kirana stores, hotels, restaurants, and caterers (HoReCa), corporates, SMEs, companies, and institutions.
- The B2B segment is considered to be a low-margin business and multinationals such as Carrefour exited from the country in 2014.
- In July 2020, e-commerce major Flipkart Group acquired a 100% stake in Walmart India Pvt. Ltd, which operates the Best Price cash-and-carry business.