RIL Aquires Metro AG: The Competition Commission of India has approved the acquisition of Germany’s retail company Metro AG’s India-based wholesale operation by the country’s largest private company Reliance Industries. . Reliance Industries is going to acquire Metro Cash & Carry India for Rs 2850 crore.
Reliance Retail Ventures Ltd, a subsidiary retail company of Reliance Industries of Asia’s richest Mukesh Ambani, had entered into an agreement to acquire 100 per cent equity of Metro Cash and Carry India Pvt Ltd. Reliance Industries had tied up for this acquisition for Rs 2850 crore. Through this acquisition, the company is trying to further strengthen its position in the India Retail Sector.
Metro AG was the first company in India to start Cash & Carry business in 2003. The company currently operates 31 large stores in 21 cities. The company has 3500 employees. Metro supplies fruits and vegetables, grocery, electronics, household items, apparel in its stores. Metro’s customers include hotels, restaurants, offices, companies, small retailers and grocery stores. Half of the company’s stores are present in South India.
In the financial year ending September 2022, Metro India’s sales were Rs 7,700 crore. According to Morgan Stanley, this acquisition decision of Reliance will help it to expand in the retail sector, especially in 8 out of 10 major cities where Metro is present. This acquisition will help Reliance to make inroads among institutional customers along with grocery stores. Metro is a major player in the B2B market. At the same time, Reliance has around 16600 stores in the country and through the strong wholesale penetration of Metro, it will be able to further strengthen its operation.
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