Industry sources said that Reliance Industries will acquire Cash & Carry from German retailer METRO AG in India in a deal estimated at 500 million euros (Rs 4,060 crore).
They said the deal includes 31 wholesale distribution centers, land banks and other assets owned by METRO Cash & Carry here. This will help Reliance Retail, the nation's largest retailer, expand its presence in the B2B sector
They added that the discussion between Reliance Industries and Metro led by billionaire Mukesh Ambani has been going on for the past few months, with the German parent company accepting Reliance Retail's offer last week.
When contacted, both METRO and Reliance Industries declined to comment on the development.
"Our company is evaluating various opportunities on an ongoing basis," a Reliance spokesman said.
"We do not comment on rumors or speculation in the market," a METRO AG spokesman said.
METRO Cash & Carry clients include retailers, kirana stores, hotels, restaurants, catering companies (HoReCa), businesses, SMEs, corporations and foundations.
The B2B sector is a low-margin business and multinational companies like Carrefour left the country in 2014.
In July 2020, major e-commerce conglomerate Flipkart Group acquired a 100 per cent stake in Walmart India Pvt Ltd, which operates best rate cash and carry business.
Other retailers have also been in the running to acquire METRO Cash & Carry, including Siam Makro, which operates a wholesale cash and carry business under the LOTS Wholesale Solutions brand.
Last month, Siam Makro, part of the Charoen Pokphand Group in Thailand, announced its withdrawal from the METRO Cash & Carry India tender.
METRO AG, which operates in 34 countries, entered the Indian market in 2003.
It operates six stores in Bengaluru, four in Hyderabad, two in Mumbai and Delhi, and one in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nasik, Ghaziabad, Tumakuru, Vijayawada, Visakhapatnam, Guntur and Hubballi.
Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries, is the holding company for all of the group's retail businesses.
RRVL has reported a consolidated turnover of around Rs. 2 lakh crore for the year ended March 31, 2022.
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