(Bloomberg) -- Reliance Industries Ltd. agreed to buy Metro AG's Indian unit for 28.5 Indian billion rupees ($344 million) as the nation's biggest retailer run by billionaire Mukesh Ambani further expands his footprint.
Metro will see a transaction gain of about €150 million at closing, and higher earnings per share are anticipated, the company said in a statement late Wednesday. The transaction with Reliance Retail Ventures is expected to close by March 2023.
With India's trade industry seeing consolidation and disproportionate growth, a sizeable investment would have been needed to further grow the business, Steffen Greubel, Metro's chief executive officer, said in the statement.
“Now is the right time to use the momentum and open a new chapter for METRO India,” Greubel said.
Metro entered the Indian market in 2003 and currently operates 31 wholesale distribution centers across the country serving business customers, according to its website. Core clients include hotels, restaurants, as well as different types of corporates as small retailers.
Bloomberg News previously reported in October Reliance is said to be the sole bidder for Metro's Indian unit and was in advanced discussions.
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