RIL, Adani in 3-horse race to bag Metro deal

In talks to buy a partial or full stake in German retailer's India unit

- NIVEDITA MOOKERJI

Three business houses are likely to be in the final race to strike a deal with Germany's Metro AG for investing in its India unit Metro Cash & Carry. Industry sources in the know named Reliance, Adani Group, and Thailand's conglomerate Charoen Pokphand (CP) as potential frontrunners to acquire a partial or full stake in the Gurugram-headquartered Metro Cash & Carry, which has 31 stores and 5,000 direct employees.

Around 20 companies, including strategic and private equity investors, were approached by the German chain, inviting them to bid for the Indian wholesale business, according to a source aware of the M&A developments.

The three companies, which could possibly ready their bids, did not respond to Business Standard's queries sent to them on e-mail. Estimates suggested a valuation of over $1 billion for the target company.

If Reliance were to win the bid, this would consolidate its position in the retail space further to compete with majors such as Walmart, Udaan, D-Mart, and Amazon.