Reliance acquires METRO Cash & Carry India for ₹2,850 cr
The retail arm of billionaire Mukesh Ambani-led Reliance Industries, Reliance Retail Ventures Limited (RRVL), has signed a pact to acquire 100% stake in METRO Cash & Carry India in a deal worth ₹2,850 crore, subject to certain conditions. The acquisition will add uniquely positioned multi-category large format stores to Reliance Retail’s store footprint across India and further strengthen its new commerce business, RIL said in an exchange filing today. The transaction is expected to be completed by March 2023.
“Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of Reliance Industries Ltd, today signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India Pvt Ltd. (‘METRO India’) for a total cash consideration of ₹2,850 crore, subject to closing adjustments,” RIL said in a BSE filing.
METRO India, a wholly owned subsidiary of Germany-based METRO AG, operates cash and carry stores primarily under the ‘METRO’ brand in India. The company, one of India's leading business-to-business wholesalers, started operations in India in 2003 and introduced cash-and-carry business format in the country. It currently operates 31 large format stores across 21 cities with about 3,500 employees.
As per the exchange filing, the acquisition will enable Reliance Retail to get access to a wide network of METRO India stores located in prime locations across key cities, a large base of registered kiranas and other institutional customers, strong supplier network and some of the global best practices implemented by METRO in India. “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. The symbiotic relationship will create greater value for all stake holders in the retail ecosystem.”
Isha Ambani, director, Reliance Retail Ventures Limited, 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. METRO India is a pioneer and key player in the Indian B2B market and has built a solid multi-channel platform delivering strong customer experience. We believe that METRO India’s healthy assets combined with our deep understanding of Indian merchant / kirana ecosystem will help offer a differentiated value proposition to small businesses in India.”
With the acquisition of METRO India, Reliance Retail will continue to build reach across the country to serve the entire spectrum of Indian society i.e. households, kiranas and merchants, HoReCa and small and medium enterprises and institutions, and be the partner of choice, and enable win-win opportunities for producers, brand companies and global suppliers, the company said.