Reliance Sole Bidder for Metro’s India Business: Report | Techno Glob

Reliance Industries Ltd. (RIL), led by Mukesh Ambani, is in advanced talks to acquire German-based Metro AG’s wholesale business in India.

According to Bloomberg, a final decision could emerge as early as next month, as Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the so-called cash-and-carry business.

However, people familiar with the matter said discussions between Reliance and Metro over details, including valuation, are ongoing and could fall apart.

Along with CP Group and Reliance, the potential sale of Metro’s cash-and-carry business had also attracted interest from Inc.

A deal could value the company between $1 billion and $1.2 billion, including debt.

Metro entered the Indian market in 2003 and currently operates 31 wholesale fulfillment centers across the country, serving business customers only, according to its website. Its main customers include hotels, restaurants as well as different types of businesses such as small retailers.

Reliance is already the country’s largest bricks-and-mortar retailer, and a strong wholesale unit would further bolster its operations in India.

Reliance Retail is India’s largest organized retailer, both in terms of turnover and store network. It has 14,412 stores in India spread over 40 million square feet.

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