Mukesh Ambani will buy this company on Dhirubhai’s birthday, a new war may begin
Reliance will acquire Metro’s India unit in a deal estimated at around Euro 500 million (Rs 4,060 crore), which includes 31 wholesale distribution centres, land banks and other assets owned by Metro Cash & Carry in the country.
Reliance Metro Deal: Asia’s second richest businessman Mukesh Ambani (Mukesh Ambani) birthday of his father Dhirubhai Ambani (Dhirubhai Ambani Birthday) That is, on December 28, they are going to acquire a new company. The acquisition will be German retailer Metro AG Cash & Carry (Reliance Metro Deal) of.
This deal worth more than Rs 4 thousand crore is almost finalized. Mukesh Ambani is considering making 31 Metro stores a multi-brand retail chain. With this takeover, Mukesh Ambani will start another new war. With the acquisition of Metro Cash and Carry, Mukesh Ambani is set to compete directly with Radhakishan Damani’s retail chain Dmart and Hypermarket.
What will come under Reliance’s control?
According to experts, Reliance will acquire Metro’s India unit in an estimated deal of about 500 million euros (Rs 4,060 crore), which includes 31 wholesale distribution centers, land banks and other assets owned by Metro Cash and Carry in the country. This will help the country’s largest retailer Reliance Retail to increase its presence in the B2B segment.
What will happen to the 4000 employees?
According to sources, Reliance has completed due diligence for the metro business in India, which generates revenue of around $1 billion annually and is making profits. While finalizing the legal aspects of the transaction as well as some discussions related to the status of employees and stores are being held. There are some concerns among Metro’s 4,000 employees about the change in ownership and the new work environment, but Reliance is probably keen to retain people. Most of the 31 stores appear to be profitable.
retail business rules
India’s foreign investment rules prevent foreign players from entering multi-brand retail business, forcing players like Metro to limit themselves to cash-and-carry wholesale and sell to hotels, offices and grocery stores. compel. Multiple cell sales by merchants generate about half the revenue for Metro, the other one-third comes from offices, reports TOI. Adding B2C business to wholesale shops requires a change in the operating model.
