Metro Group divests Greek Cash & Carry operations

Metro has divested its Cash & Carry business in Greece to local retailer Sklavenitis. This will allow Metro to continue to focus on its online and multimedia initiatives in its most profitable markets.

Acquisition worth €65mn
Metro has continued to renew its Cash & Carry business in international markets with the latest move being to exit Greece. Greek retailer, Sklavenitis has signed an agreement for the acquisition of nine Makro Cash & Carry Greek stores, valued at €65mn. The transaction is subject to merger control clearance.

Chairman of the Management Board of Metro AG and CEO of Metro Cash & Carry, Olaf Koch commented that Metro found the market challenging and would not be able to grow sustainably on its own.

Sklavenitis growing presence in Greece
This transaction grows Sklavenitis presence in Greece, where it operates supermarkets. It also gives Sklavenitis more buying power as the market remains highly fragmented, with a large proportion of traditional grocery outlets.

Commenting on the transaction, Gerasimos Sklavenitis, CEO Sklavenitis S.A said that the network of Makro Cash & Carry stores is well established in Greece, creating an opportunity for the retailer to enter the wholesale market. Sklavenitis has also been seeking to form alliances and partnerships with other retailers to improve purchasing scale in the face of competitive pressures from multinational retailers, Delhaize and Carrefour.

Source: igd.com