Billionaire Mukesh Ambani’s Reliance Industries Ltd. (RIL) is all set to acquire the German firm Metro AG’s India business. A deal that is expected to cost Rs 2,850 crore will see Reliance Retail Ventures Limited (RRVL) acquire Metro AG’s wholesale operations in India.
A joint statement about this takeover read, “Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, today signed definitive agreements to acquire a 100 per cent equity stake in Metro Cash & Carry India for a total cash consideration of Rs 2,850 crore, subject to closing adjustments.”
While the move is expected to strengthen Reliance’s position in India’s retail sector, it is also expected that the company will expand its business even more. With this takeover, Reliance will also get access to 31 large format Metro India stores along with a large chain of registered kirana shops and supply network.
The deal’s nuances also comprise of the operative business of all 31 Metro India stores along with the real estate portfolio. In this case, the latter includes 6 store-occupied properties.
The statement further adds, “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.”
As per a PTI report, RRVL Director Isha Ambani said, "The acquisition of Metro India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises."
“All Metro India stores will continue to operate under the Metro brand during an agreed transition period………For Metro employees and Metro customers, there will be no noticeable changes for the time being,” said Metro AG in a statement as per the PTI report.