India’s Reliance Retail Ventures said on Thursday it has agreed to buy the Indian unit of German retail chain Metro AG for 28.5 billion rupees ($344 million) as it makes aggressive moves in the retail industry. The deal will help the Mukesh Ambani-backed company strengthen its wholesale format and consolidate its position as the biggest player in India’s burgeoning retail industry, with stores spanning electronics, food and fashion.
Ambani is also competing with another billionaire, Gautam Adani, in the race to buy India’s debt-ridden Future Retail Ltd. Metro, which sold parts of its Belgian operations earlier this month, said it expects to make a profit of around 150 million euros ($159.15 million) from the sale of its India business.
Metro has been operating in the Indian market since 2003 and reported revenues of around €926 million for the financial year ending September 2022. It operates 31 stores in 21 cities and is mostly a supplier to restaurants and smaller businesses. “Given the market dynamics, significant investments would be needed to further grow the business,” Metro CEO Steffen Greubel said. He added that the divestiture “will allow Metra to focus on accelerating growth in the remaining country portfolio.” The companies expect the deal to close by March 2023.
