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.
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“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.