scorecardresearchReliance To Acquire Metro’s India Unit for $344 Million

Reliance To Acquire Metro’s India Unit for $344 Million

Updated: 22 Dec 2022, 08:09 AM IST
TL;DR.

Reliance Industries Ltd. agreed to buy Metro AG’s Indian unit for 28.5 Indian billion rupees ($344 million) as the nation’s biggest retailer run by billionaire Mukesh Ambani further expands his footprint.

FILE- Adani Group Gautam Chairman Gautam Adani, left, Reliance Industries Chairman Mukesh Ambani, center, and Mahindra Group Chairman Anand Mahindra interact as they attend 'UP Investors Summit 2018' in Lucknow, India, Feb. 21, 2018. Asia’s richest man, Gautam Adani, made his vast fortune betting on coal as an energy hungry India grew swiftly after liberalizing its economy in the 1990s. He's now set his sights on becoming world's biggest renewable energy player, by 2030, adroitly aligning his investments with the government’s own priorities. (AP Photo/Rajesh Kumar Singh, File)

FILE- Adani Group Gautam Chairman Gautam Adani, left, Reliance Industries Chairman Mukesh Ambani, center, and Mahindra Group Chairman Anand Mahindra interact as they attend 'UP Investors Summit 2018' in Lucknow, India, Feb. 21, 2018. Asia’s richest man, Gautam Adani, made his vast fortune betting on coal as an energy hungry India grew swiftly after liberalizing its economy in the 1990s. He's now set his sights on becoming world's biggest renewable energy player, by 2030, adroitly aligning his investments with the government’s own priorities. (AP Photo/Rajesh Kumar Singh, File)

(Bloomberg) -- Reliance Industries Ltd. agreed to buy Metro AG’s Indian unit for 28.5 Indian billion rupees ($344 million) as the nation’s biggest retailer run by billionaire Mukesh Ambani further expands his footprint.

Metro will see a transaction gain of about €150 million at closing, and higher earnings per share are anticipated, the company said in a statement late Wednesday. The transaction with Reliance Retail Ventures is expected to close by March 2023. 

With India’s trade industry seeing consolidation and disproportionate growth, a sizeable investment would have been needed to further grow the business, Steffen Greubel, Metro’s chief executive officer, said in the statement. 

“Now is the right time to use the momentum and open a new chapter for METRO India,” Greubel said. 

Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centers across the country serving business customers, according to its website. Core clients include hotels, restaurants, as well as different types of corporates as small retailers. 

Bloomberg News previously reported in October Reliance is said to be the sole bidder for Metro’s Indian unit and was in advanced discussions. 

First Published: 22 Dec 2022, 08:09 AM IST