Reliance Industries Ltd (RIL) is acquiring Metro Cash & Carry India Pvt Ltd for a total cash consideration of Rs 2,850 crore that will further strengthen its presence in the retail sector. The deal will see Reliance Retail Ventures Ltd (RRVL), a RIL subsidiary, acquiring an 100 per cent equity stake in Metro India. Metro India commenced its Indian operations in India in 2003.

The company was the first to introduce the cash-and-carry business format in the country and currently operates 31 large format stores across 21 cities with about 3,500 employees. A statement from its parent Metro AG said that it expects a gain of €150 million from the deal. The German company said the deal comprises the operative business associated with the 31 stores as well as real estate that includes six store-occupied properties.

The transaction is subject to government and regulatory approvals and is expected to close by March. Reliance Retail said the multi-channel B2B cash & carry wholesaler has a reach to over three million B2B customers in India, of which one million are frequent purchasers, through its store network and the eB2B app.

During the fiscal year ended September 30, 2022, Metro India generated sales of Rs 7,700 crore, its best performance since its entry into the country. ``We believe that Metro India’s healthy assets combined with our deep understanding of Indian merchant and the kirana ecosystem will help offer a differentiated value proposition to small businesses in India,’’ Isha Ambani, director, RRVL, said.

Shares of Reliance Industries on Thursday ended at Rs 2,577.90 against the previous close of Rs 2,584.40 in a weak market.