Whereas Mukesh Ambani-led Reliance Industries, 500 million euros or Rs. 4,060 crore while in talks with the German retailer to acquire its cash and carry business in India, it has closed deals to buy the company for Rs 2,850 crore.
Metro AG started its India business in 2003 and was the first company to introduce cash and carry business system in the country. The company currently operates 31 large format stores across 21 cities, employing nearly 3,500 people.
With this acquisition, Reliance Retail will gain access to a vast network of Metro India stores located at prime locations in key cities, a large base of registered other corporate customers, a strong supplier network and some of the global best practices implemented by Metro.
The acquisition will enable Reliance Retail’s physical store and consumer to better serve small businesses.
METRO India is a pioneer and key player in the Indian B2B market and has built a solid multi-channel platform that delivers a robust customer experience. Isha Ambani, director, Reliance Retail Ventures Limited, said that METRO India’s healthy assets and deep understanding of the Indian merchant/grana ecosystem will help it deliver differentiated value to small businesses in India.