German retailer Metro AG plans to cash out of India business for around $1.5-1.75 billion, according to a media report.
Among those in discussions to buy the Indian cash-and-carry operations are Amazon, Charoen Pokphand (CP) Group, Reliance Retail, Avenue Supermarts, Tata Group, Lulu Group, and PE fund Samara Capital, a report in The Economic Times said.
The company has been running its nationwide chain of 31 cash-and-carry stores since 2003 but stiff market competition and large investments compelled the Dusseldorf-headquartered multinational to first undergo a detailed business review and then choose to sell.
JP Morgan and Goldman Sachs have been appointed to find a buyer for the business after Bain & Co submitted a detailed strategy report.
“At Metro, we regularly assess our international portfolio, such as our market position in the respective country, the life cycle of our operations, the growth potential of our business. This is a general approach and normal business applied to all countries, including India,” global director of corporate communications at Metro, Gerd Koslowski told the newspaper, declining to comment further.