Mukesh Ambani-led Reliance Industries Ltd. (RIL) is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India.
A final decision could emerge as early as next month as Charoen Pokphand Group Co. is no longer actively in talks with Metro
Mukesh Ambani-led Reliance Industries Ltd. (RIL) is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India.
According to Bloomberg, a final decision could emerge as early as next month as Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the so-called cash-and-carry business.
However, people close to the matter said the discussions between Reliance and Metro regarding details including the valuation are ongoing and could fall apart.
Along with CP Group and Reliance, Metro’s potential cash-and-carry business sale had also drawn interest from Amazon.com Inc.
A deal could value the business at $1 billion to $1.2 billion including debt.
Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centers across the country, serving business customers only, according to its website. Its core clients include hotels, restaurants as well as different types of corporates such as small retailers.
Reliance is already the country’s biggest brick-and-mortar retailer, and a strong wholesale unit would further deepen its operations in India.
Reliance Retail is India's largest organised retailer both in terms of revenue and store network. It has 14,412 stores in India spread over 40 million square feet.