According to several reports, Reliance is all set to acquire Metro Cash and Carry India. It has already given a non-binding bid. Go through the entire article to find out more about this news piece.
Non-Binding Bid
Reliance retail, which Mukesh Ambani is heading, has recently put forward a non-binding bid of 5600 crore rupees. The bid has been put forward to buy Metro Cash and Carry’s India. Reliance is in competition with two big companies namely, Thailand-based CP group and Lightspeed Venture partners. Various reports suggest that the bid put forward by the CP group is approximately 8000 crore rupees.
About Metro India
Two weeks before this news came out, Metro India gave a presentation about the achievements and progress of the firm in Bengaluru, India. This presentation was done for the senior partners of Reliance Retail and CP group. “We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,” said a Reliance spokesperson person to the Economic Times. “Against this background, Reliance has an edge over others because it is the only Indian company serious about buying Metro India. Thailand’s CP Group is also hugely interested because it already has a presence in India through Lots Wholesale outlets,” one of the persons told the business daily.
Merchant bankers of Metro Cash
As per the recent reports, Metro Cash and Carry India have JP Morgan and Goldman Sachs as their merchant bankers. They have assessed the business to be approximately $1 billion. According to several reports, the binding bid has to be filed within this month during the bid can also change. According to data posted by Metro Cash and Carry India, they got a gross profit of about 725 crore rupees on sales of 6503 crore rupees.
About Metro Cash and Carry India
This company is basically a wholesaler and centers around food retail. The company is in 34 cities across the country as of now. The sole purpose behind the existence of this company is to provide its customers with a wide range of options to choose from which are available at wholesale prices. This company has been in India since 2003. It has 31 distribution centers. After being in the business for so many years, it has an excellent mastery over the Indian market. Therefore, it is in a solid position to serve all the needs of its customers.