Wumart wins bidding war for Metro China
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.
“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.