After Carrefour sold itself to Suning in China, the ownership of Metros China business, another foreign retail and wholesale supermarket, has also attracted much attention.
On July 9, Bloomberg reported that an investment consortium joined by Wumart, a Chinese supermarket operator, and Yonghui, a rival, had been included in the final round of Metros China business, while Suning abandoned the bid.
The source also disclosed to the above media that due to intense competition from potential buyers, the deal could make Metros China business worth about $2 billion; Yonghui has now joined Gaolu Capital, Tencent is also negotiating to join the investment consortium, which is composed of American Cuisine Network and Houpu Capital. Finally, the consortium was successful. The finalists were asked to submit a binding offer in August, and Metros goal was to reach an agreement with the buyer as early as September.
According to the official website, Metro was founded in Germany in 1964 and has a history of 55 years. It has initiated the concept of buy-and-sell operation, and also designed a large-scale warehouse structure, mainly wholesale and retail. In 1996, Metro entered China and opened its first store in Shanghai. Metro once attracted a large number of Chinese consumers with its cash-for-cash model, and its revenue has been rising all the way. So far, Metro has opened 95 shopping malls in 59 cities in China, with more than 11,000 employees and more than 8 million customers.
According to the results, Metros revenue reached 65.529 billion euros in 2008, approaching a record high. However, after breaking through the high point, Metros business went downhill. From 2009 to 2013, its revenue basically stabilized at around 65 billion euros, but it has declined significantly since 2014. Although the Asian market accounts for only a small part of Metros global business, it has also been affected to some extent. Data show that sales in China were only 2.7 billion euros in the fiscal year 2017-2018.
In the second half of 2018, the media revealed that Metro might sell most of its stake in the Chinese business; after that, the news further pointed out that 80% of Metros stake would be sold to Chinese companies.
Although Metro has fewer stores in China than Wal-Mart and Carrefour, its competitiveness in the B-end can not be underestimated. Thin camels are bigger than Ma Da, and Metros Chinese business has attracted many buyers. Tencent and Ali have been exposed to extend olive branches to them, but the news has not been reached.
However, whoever the final takeover is, it seems to be a good choice for the old German merchant Chao in the fierce domestic competitive environment.
Source: All-weather Science and Technology Responsible Editor: Qiao Junyi_NBJ11279