The Competition Commission of India has cleared the Reliance Retail Ventures acquisition of Metro AGs wholesale operations in India. Metro Cash and Carry is engaged in wholesale operations in India, which is operated ay a German firm. Reliance Retail Ventures Limited (RRVL) is a subsidiary of Reliance Industries Limited, whereas Metro Cash and Carry is engaged in the wholesale operations in India.Reliance Retail Ventures Limited has signed a definitive agreement last year in December, to acquire the 100 percent stake for the total cash consideration of Rs 2,850 crore in the German company venture which owns Metro Cash and Carry wholesale operations in India. While announcing the deal, it is said that with the help of this acquisition of Reliance Retail Ventures Limited will the complete access to the wide network of METRO India stores across the cities in the nation. With this, a large base of registered users of mom-and-pop stores, supplier network, other institutional customers will come under their services, according to the official statement.The official release says “The acquisition will further strengthen RRVLs 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 stakeholders in the retail ecosystem.”The regulator said it has cleared the “acquisition of Metro Cash and Carry India Pvt Ltd by Reliance Retail Ventures Ltd.” The fair trade regulator has also given its nod for the “acquisition of 100 per cent of equity share capital of L&T Infrastructure Development Projects Ltd and Kudgi Transmission Ltd, by Epic Concesiones Pvt Ltd and Infrastructure Yield Plus II (affiliates of Edelweiss Group), respectively”, according to another tweet.Especially noteworthy is the fact that L&T Infrastructure Development Projects Limited is engaged in the business of creating, running, and maintaining infrastructure projects. Infrastructure Yield Plus II (IYP II), an alternative investment trust (AIF) of the Edelweiss group, is the sole owner of Epic Concesions Pvt Ltd (ECPL). The transmission system needed for electricity evacuation is being developed by Kudgi Transmission Ltd.The deals which are beyond a certain threshold need to be approved by the Competition Commission of India (CCI), which keeps eye on the unfair business practices.Metro operations in IndiaMetro Cash and Carry began operations in India in 2003. It was the first company to come up with cash and carry format in India. The company has over 3,500 employees and operates in 31 large format stores in about 21 cities, across the nation. The channel serves over 3 million B2B customers in India, out of which 1 million are frequently buyers though its store network and eB2B platform.Reportedly, In year 2021-22, Metro India has generated the sales of Rs 7,700 crore, which is its best performance since ot has entered market of India.Reliance after the dealIn an official release after the deal Isha Ambani, director, RRVL, said, “The acquisition of METRO India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises. METRO India is a pioneer and key player in the Indian B2B market and has built a solid multichannel platform, delivering strong customer experience.” She further added, “We believe that METRO Indias healthy assets, combined with our deep understanding of the Indian merchant/kirana ecosystem, will help offer a differentiated value proposition to small businesses in India.”Metro AG after the dealSteffen Greubel, chief executive officer, METRO AG, also said in the same release, “With METRO India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead METRO India into the future in this market environment.”After the deal, the shares of Reliance Industries opened marginally higher at Rs 2,284.90 as against the closing price of the previous session at Rs 2,276 on the BSE on Wednesday.
