Reliance-Metro deal worth 2850 crores completed: RRVL gets access to 31 large format stores of Metro

Reliance Retail Ventures Limited (RRVL) has completed the acquisition of the Indian cash and carry business of German retailer Metro AG. Metro AG gave this information on Thursday. Metro AG said the deal includes all 31 wholesale stores operated by Metro Cash & Carry India and the entire real estate portfolio. This deal will help Reliance Retail to strengthen its position in India.
As per the deal, all Metro India stores will continue to operate under the Metro brand during the transition period. There will be no major change for Metro employees and Metro customers as well. Metro and RRVL had announced the deal in December 2022 with the Mukesh Ambani-led firm for Rs 2,850 crore. Stefan Grebel, CEO of Metro AG, said: Metro India will open a new chapter in its journey.
With this acquisition, Reliance Retail will have stores at prime metro locations in Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, Amritsar, Ahmedabad, Surat, Indore, Meerut, Lucknow, Nashik, Visakhapatnam, Guntur, Vijayawada, Tumakuru, Ghaziabad and Hubli. Will get access. As part of the deal, Reliance Retail will also get a large base of registered kirana stores, institutional customers and a strong supplier network.
RRVL will also get access to Metro's network of HoReCa (hotels, restaurants and caterers) customers. The international food wholesaler has 31 large format stores across 21 cities in the country with approximately 3,500 employees. So far in FY22, Metro India has achieved sales of 29.8 million Euros. This acquisition will further strengthen the physical store footprint of Reliance Retail.
When the deal was struck, Isha Ambani, Director, Reliance Retail Ventures, said, “Metro India is a dominant player in the Indian B2B market and has built a robust multi-channel platform to deliver robust customer experience. We believe that our deep understanding of the Indian merchant/grocer eco-system and Metro India's healthy assets will help small businesses in India thrive.'
The acquisition of METRO Cash & Carry India will further expand RRVL's network. It already has other omnichannel businesses like JioMart, Ajio, Netmeds, and Jivame in its portfolio. RRVL for the financial year ending March 31, 2022 had a consolidated turnover of approximately Rs 1,99,704 crore and a net profit of approximately Rs 7,055 crore.