The Competition Commission of India (CCI) has approved the acquisition of METRO Cash and Carry India by Reliance Retail Ventures, a subsidiary of Reliance Industries.
In a statement released yesterday, the competition regulator said: The proposed combination involves acquisition of 100% of the issued and paid-up equity share capital of METRO Cash and Carry India (target) by the Reliance Retail Ventures (acquirer).
Reliance Retail Ventures Limited (RRVL), on 22 December 2022, had signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India (METRO India) for a total cash consideration of Rs 2,850 crore, subject to closing adjustments.
METRO India 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.
Through this acquisition, Reliance Retail gets access to a wide network of METRO India stores located in prime locations across key cities, a large base of registered kiranas and other institutional customers, strong supplier network and some of the global best practices implemented by METRO in India.
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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.
Reliance Industries is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), financial services, retail and digital services.
On a consolidated basis, net profit of RIL declined 2.8% to Rs 15,792 crore on 17.4% increase in net sales to Rs 2,17,164 crore in Q3 December 2022 over Q3 December 2021.
The scrip shed 0.38% to currently trade at Rs 2267.75 on the BSE.
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