Wumart wins bidding war for Metro China
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Chinese retail group Wumart has won a lengthy bidding process for the Metro China business.
The German grocery and hypermarket retailer commenced a search for a buyer for the business in March, with various sources reporting an asking price of between US$1.5 billion and $2 billion. As many as eight bidders were in the running with a short list culled several times before non-binding bids were due in June.
“This partnership includes the sale of Metro’s entire indirect participation in Metro China to a subsidiary of Wumei for an enterprise value of approximately US$2.1 billion,” Metro said in a statement.
However, Metro will retain a 20-per-cent stake in the Metro China-Wumart joint venture. The deal is subject to regulatory sign-off.
Metro China has 95 stores in the territory as well as real estate assets in several major cities, including Beijing and Shanghai.
Questions & Answers
Q.What was the final agreed price for Metro China?
What was the final agreed price for Metro China?
Wumart will pay approximately US$2.1 billion for Metro's indirect participation in Metro China, according to a statement from Metro. This was an enterprise value figure for the business.
Q.Will Metro completely exit the Chinese market with this sale?
Will Metro completely exit the Chinese market with this sale?
No, Metro will retain a 20-per-cent stake in the joint venture formed with Wumart. This means they will still have a presence in the market.
Q.How many stores does Metro China operate in the territory?
How many stores does Metro China operate in the territory?
Metro China currently operates 95 stores across the territory. They also possess real estate assets in major cities like Beijing and Shanghai.
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