Metro China could be sold by German parent
Metro AG is considering exiting its Metro China retail business as part of a plan to focus on wholesaling activities worldwide.
The German grocery giant has already placed its struggling domestic big-box chain Real on the market and spun off its electronics retail division, since renamed Ceconomy. Now it is reportedly seeking buyers for its Chinese cash & carry business.
Quoting people familiar with the matter, Bloomberg reports options for the China business range from offloading a minority stake to finding a strategic partner or forming a joint venture. It may choose to retain the business.
The Metro China Cash & Carry business comprises 93 stores and achieved sales of 20.3 billion yuan (US$3 billion) last fiscal year.
Earlier this month, Bloomberg reported that Chinese investment firm Fosun International was negotiating a US$500 million holding in Metro, that would see it take a 9 per cent holding.
Fosun International currently owns 10 per cent in accessories retailer Folli Follie, resort Club Med, Canada’s Cirque du Soleil and the Malaysian-founded Secret Recipe cafe chain.