Metro Board Plans To Split Food Business From Electronics
Metro Group’s management board has announced plans for a ‘demerger’ that would split its wholesale and food business and its consumer-electronics business into two separate entities.
Both would be stock-listed individually, with their own distinct profiles, as well as having separate management and supervisory boards.
The demerger, as planned, would see Metro Cash & Carry, Real and other related businesses and services spun off to create a corporate entity that is solely focused on wholesale and food retail.
The remaining Metro AG business, comprising Media-Saturn and its portfolio of formats, would subsequently be dedicated entirely to consumer electronics under a new company name.
The plan would also see Metro AG shareholders receive shares in both companies in proportion to their existing holdings.
The CEO of Metro AG, Olaf Koch, explained, "Both our wholesale and food-specialist business, as well as our consumer-electronics business, have continued to commercially improve, are on a steady, successful path, and are best equipped for an independent future.
"Our shareholders would effectively own two well-positioned market leaders, both of whom are increasingly focusing on their respective business areas and are generating more value for customers, employees and business partners."
The Metro board plans to have Koch run the wholesale and food-specialist entity, while Media-Saturn’s current CEO, Pieter Haas, would take leadership of the consumer-electronics entity.
The demerger, which is still subject to approval by the relevant supervisory boards and other bodies, is expected to be complete by mid-2017.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.