Four Bidders shortlisted in Metro China sale
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Germany’s Metro has shortlisted four prospective bidders for its China business, including two of Mainland China’s largest retail groups.
The Metro China sale has been in planning since last September, with formal bids invited in March as the German retail giant looks to quit the challenging market.
Metro AG has invited Suning Holdings, Yonghui Superstores, Wumart stores and Meicai to submit bids before a deadline of late May, early June. Some of the bids may be lodged in partnership with private equity investors.
Meicai is an unexpected inclusion in the shortlist. A local startup that acts as a conduit between farmers and restaurants, Meicai was founded by Liu Chuanjun, a local entrepreneur in 2014. According to a Bloomberg News report last October, the startup last year raised at least $600 million in a funding round led by Tiger Global Management and Hillhouse Capital, which would have valued the business then at about $7 billion.
The Metro China sale is expected to net the Germany owner about $1.5 billion. The cash-and-carry business has 95 stores and reported $3 billion last financial year.
Questions & Answers
Q.Why is Metro AG selling its China business?
Why is Metro AG selling its China business?
Metro AG is looking to exit the challenging Chinese market. The sale has been in planning since last September, with formal bids invited in March to facilitate their departure from the region.
Q.Who are the four shortlisted bidders for Metro China?
Who are the four shortlisted bidders for Metro China?
The four prospective bidders are Suning Holdings, Yonghui Superstores, Wumart stores, and Meicai. Some of these groups may lodge their bids in partnership with private equity investors.
Q.What is Meicai's background, given it's an unexpected bidder?
What is Meicai's background, given it's an unexpected bidder?
Meicai is a local startup founded in 2014 by Liu Chuanjun, acting as a conduit between farmers and restaurants. It raised at least $600 million in funding last year, valuing the business at about $7 billion.
Q.How much is Metro AG expecting to gain from the sale of its China business?
How much is Metro AG expecting to gain from the sale of its China business?
The Germany owner is expecting to net approximately $1.5 billion from the sale. The cash-and-carry business currently operates 95 stores in China.
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