German retailer Metro has agreed to sell a majority stake in its Chinese operations to local retailer Wumart, Metro said on Friday, confirming an earlier Reuters report.
"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 €1.9 billion ($2.1 billion)," Metro said in a statement.
Metro will retain a 20% stake in the Metro Wumart China joint venture, and receive proceeds of €1 billion, the German retailer said, adding the deal was subject to scrutiny from regulators.
The Front Runner
Earlier on Friday, Reuters reported that Wumart Stores had emerged as the front runner to clinch a majority stake in Metro's Chinese business, citing sources familiar with the auction.
Metro's Chinese operations include 95 stores and real estate assets in major cities such as Beijing and Shanghai.
The sale is part of a global reorganisation of the wholesaler and comes as China's wholesale and retail sectors are experiencing strong competition from e-commerce players.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
