Reliance Retail, on Wednesday, signed a definitive agreement to acquire a 100 per cent stake in German general store company Metro AG’s India operations. The Reliance group will pay Rs 2,850 crore for the deal. The deal is expected to be completed by March 2023.
“The acquisition will further strengthen Reliance Retail’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms and sourcing capabilities. The symbiotic relationship will create greater value for all stakeholders in the retail ecosystem,” Reliance Retail said.
Metro AG entered India in 2002 and was the first to introduce a cash-and-carry business here.
“With Metro India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time,” Steffen Greubel, CEO of Metro AG, said.
With this, Metro AG has joined a list of foreign retail companies that came to India but have either made an exit or are operating indirectly.
Walmart Inc
The US retail giant acquired the Indian e-commerce company Flipkart in the world’s largest e-commerce deal for $16 billion in 2018. For years, it tried to establish the company as a competitor to domestic brands like D-Mart and Big Bazaar.
In 2020, Walmart fired 56 of its executives in India.
Finally, in July 2020, Flipkart Group acquired a 100 per cent stake in Walmart India and launched Flipkart Wholesale, a digital marketplace. Now, Walmart operates in India as Flipkart Wholesale.
Carrefour
French retail chain Carrefour entered India in 2010 by opening its first cash-and-carry store in New Delhi. By 2013, it operated four wholesale stores in India in Delhi, Jaipur, Agra and Meerut.
In 2013, it announced adding ten new wholesale stores in India, two of which were to be located in Bangalore and the rest in different states like Haryana, Maharashtra and West Bengal.
However, in 2014, less than four years after establishing its first store in India, the retail giant announced its plans to exit India.
“The closure of Carrefour’s business in India will be effective at the end of September 2014. Until that time, the company will continue to be fully engaged with all its employees, suppliers, partners and customers to ensure a smooth transition,” Carrefour said in its announcement.
Amazon Inc
Amazon, the biggest e-commerce company in the world, runs independently in India. In 2019, it invested Rs 1,500 crore to acquire a 49 per cent stake in Future Retail’s subsidiary Future Coupons. It gave Amazon a hold of 4.8 per cent stake in Future Retail. Amazon was aiming to gain a foothold in India’s retail business.
Since 2019, the deal has not progressed any further and is undergoing a legal battle with the Reliance Group. Future Retail has been accused of violating the rules of its agreement with the US giant.
Source link
