Metro AG, the German retailer, on Thursday said that it had completed the sale of its India operations, including all 31 wholesale stores and the entire real estate portfolio (6 store-occupied properties), to Reliance Retail Ventures (RRVL). The equity valuation of the deal was pegged at nearly Rs 2,700 crore.
In December 2022, Metro had announced that it was selling its wholesale operations in India to Reliance Retail for Rs 2,850 crore.
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On Thursday, Metro said that it had achieved an earnings before interest tax depreciation and amortisation (Ebitda) gain of approximately €150 million (around Rs 1,345 crore) and cash proceeds of €0.3 billion (Rs 2,700 crore) through the transaction. The company had also reduced its net debt due to the sale of its India business, it said.
“Reliance as the new owner, with its local expertise, will successfully lead the business into the future,” Steffen Greubel, CEO of Metro AG, said, adding that the sale would support its core strategy of focusing on key markets in Europe.
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Globally, Metro is the world’s fourth-largest retailer by revenue. In India, it does not sell directly to consumers. Instead, it is an organised wholesaler or cash-and-carry operator that sells merchandise to local kirana stores, hotels and catering firms, experts said.
All Metro India stores would continue to operate under the Metro brand during an agreed transition period. And for employees and customers, there would be no noticeable changes for the time being, the company said.