Metro Cash and Carry: Reliance Retail Acquires Metro Cash and Carry India for Rs 2850 Crore
Metro Cash and Carry: Reliance Retail Acquires Metro Cash and Carry India for Rs 2850 Crore
Reliance will soon acquire Cash & Carry
With this decision by Mukesh Ambani, Reliance has taken another step towards expanding its business in the retail sector. According to international media, Lions will soon complete the process of acquiring Metro AG’s Indian business. According to reports, Reliance Industries subsidiary Reliance Retail Ventures Limited (RRVL) has signed an agreement to acquire 100% equity stake in the Indian business of Metro Cash and Carry (Metro India). The agreement was signed on Thursday.
The agreement had been negotiated for a long time
Reference was made to the acquisition of Metro India by Reliance. At first, however, there were rumors that billionaire Jeff Bezos could take over the Indian operations of the German multinational. As a result, it was feared that the Reliance group would face a tough fight. However, Baze then lost interest in Metro India. As a result, Ambani got a clear field.
The value of the contract is reduced
First of all, it was known that Mukesh Ambani’s Reliance (Reliance Industries Ltd.) was going to do this deal for Rs 8200 crore. However, later this price dropped again. Earlier reports in November had claimed the deal was going for Rs 4,060 crore, not Rs 8,200 crore, but half of that. But it was seen in practice, not even that. In the end, Reliance was able to complete this deal for Rs 2849 crore.
The Metro Cash & Carry business is well known
Metro Cash & Carry is present all over the world. Metro Cash & Carry operates in 33 countries. Even in India, their business is very popular. Apart from all metropolitan cities in the country, Metro Cash & Carry also has outlets in other major cities. The company started its activities in the country in 2003. It mainly sells products to professional customers such as hotels, restaurants. Additionally, retail customers can also purchase items from Metro Cash & Carry.
Reliance has entered the retail market
Reliance is looking to strengthen its presence in the retail market. Reliance already has more than 16,600 retail stores across the country. Reliance Retail recorded revenue of Rs 2 lakh crore on March 31, 2022. Isha Ambani, Director of Reliance Retail, said the business will benefit from the deal. Incidentally, Metro India is currently one such platform in the Indian B2B market, which has captured the hearts of Indians. (Photo courtesy – Social networks)
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