CCI Approves Acquisition Of METRO Cash By Reliance Retail

Reliance Retail Ventures, a subsidiary of Reliance Industries, has received approval from the Competition Commission of India (CCI) for the acquisition of METRO Cash and Carry India. 

According to the CCI, the proposed combination involves Reliance Retail Ventures acquiring 100 per cent of the issued and paid-up equity share capital of METRO Cash and Carry India.

The company signed definitive agreements to acquire a 100 per cent equity stake in METRO Cash & Carry India for a cash consideration of Rs 2,850 crore, subject to closing adjustments, on 22 December 2022. 

METRO India, which began operations in India in 2003 as the first company to introduce a cash-and-carry business format in the country, operates 31 large format stores across 21 cities. Reliance Retail Ventures gains access to METRO India's extensive network of stores in prime locations across key cities, a large base of registered kiranas and other institutional customers, a strong supplier network, and some of the global best practices implemented by METRO in India through this acquisition. 

The acquisition is expected to strengthen Reliance Retail's physical store footprint and enhance its ability to serve consumers and small merchants by leveraging synergies and efficiencies across supply chain networks, technology platforms, and sourcing capabilities. 

In Q3 December 2022, Reliance Industries' consolidated net profit declined 2.8% to Rs 15,792 crore on a 17.4 per cent increase in net sales to Rs 2,17,164 crore over Q3 December 2021.