Business
Reliance Retail's Acquisition Of Metro Cash And Carry Gets CCI Nod
Reliance Retail (Pic Via Wikimedia)
The Competition Commission of India (CCI) on Wednesday (15 March) said that it has approved the acquisition of Metro Cash and Carry India by Reliance Retail.
Reliance Retail, a subsidiary of Reliance Industries Limited (RIL), is engaged in the wholesale and retail sale of products across categories such as food and groceries, durable goods and apparel and footwear in India.
Metro Cash and Carry is engaged in the business of cash and carry wholesale trading in India.
"The Competition Commission of India (CCI) approves acquisition of METRO Cash and Carry India Private Limited by Reliance Retail Ventures Limited," the anti-trust watchdog said on Wednesday (15 March).
"The proposed combination involves acquisition of 100 per cent of the issued and paid-up equity share capital of METRO Cash and Carry India Private Limited by the Reliance Retail Ventures Limited," the CCI said.
In December last year, Reliance Retail had announced that it had signed definitive agreements to acquire 100 per cent equity stake in METRO India for a total cash consideration of Rs 2,850 crore, subject to closing adjustments, the company said in a statement.
Metro Cash started operations in India in 2003 as the first company to introduce cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with about 3,500 employees.
The multi-channel B2B cash and carry wholesaler has reach to over 3 million B2B customers in India, of which 1 million are frequently buying customers, through its store network and eB2B app.
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 stake holders in the retail ecosystem, the company said.
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