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.
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.