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Reliance Industries Ltd. is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India, according to people familiar with the matter, as Mukesh Ambani seeks to dominate India’s retail sector.
Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the cash-and-carry business, a source said, asking not to be identified. A final decision could emerge as early as next month, the source said.
Fair valuation
A deal could value the business at $1 billion to $1.2 billion including debt. Discussions between Reliance and Metro regarding details including the valuation are ongoing and could fall apart, sources said.
Representatives for Metro and Reliance declined to comment, while a spokesperson for CP Group didn’t immediately respond to requests for comment.
Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centres across the country, serving business customers only, according to its website. Its core clients include hotels, restaurants as well as different types of corporates such as small retailers.
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