Mumbai/Delhi: The Competition Commission of India has given its nod to Reliance Retail Ventures’ (RRVL’s) acquisition of METRO Cash & Carry India for a cash consideration of Rs 2,850 crore, according to an official statement.

RRVL is the retail subsidiary of Reliance Industries, while German B2B retailer METRO AG's Cash & Carry business in India was engaged in wholesale operations in India.

This would enable Reliance Retail to step into the B2B sphere, an expansion that would follow after months of discussion between billionaire Mukesh Ambani-led Reliance Industries and METRO

Through this acquisition, RRVL gets access to a wide network of METRO India stores across key cities, a large base of registered mom-and-pop stores (kiranas), other institutional customers, and supplier network, it said in its release while announcing its acquisition.

“The acquisition will further strengthen RRVL’s physical store footprint and ability to better serve consumers and small merchants by leveraging synergies and efficiencies across supply-chain networks, technology platforms, and sourcing capabilities. The symbiotic relationship will create greater value for all stakeholders in the retail ecosystem,” the release said.

METRO Cash & Carry's has 31 wholesale distribution centres, land banks and other assets in India, and employs about 3,500 employees.

METRO AG, which entered the Indian market in 2003, operates in 34 countries.

It operates stores in major metro cities of India, including Bengaluru, Hyderabad, Mumbai, Delhi, and Kolkata, apart from several Tier II cities across India.

Isha Ambani, director, RRVL, said in its release, “The acquisition of METRO India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises. METRO India is a pioneer and key player in the Indian B2B market and has built a solid multichannel platform, delivering strong customer experience.”

She added, “We believe that METRO India’s healthy assets, combined with our deep understanding of the Indian merchant/kirana ecosystem, will help offer a differentiated value proposition to small businesses in India.”

With the acquisition of METRO India, RRVL will continue to build reach across the country to serve households, kiranas and merchants, HoReCa (hotels, restaurants, and catering), and small and medium enterprises and institutions, and be the partner of choice, enable win-win opportunities for producers, brand companies, and global suppliers, the retailer said.

Steffen Greubel, chief executive officer, METRO AG, also said in the same release, “With METRO India, we are selling a growing and profitable wholesale business in a very dynamic market at the right time. We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead METRO India into the future in this market environment.”

Greubel added, “This will benefit our customers and our employees, for whose loyalty and performance we are very grateful, and on the other hand will enable METRO to focus on accelerating growth in the remaining country portfolio.”