German retailer Metro Group has announced that it is planning to implement its demerger next month, in order to create 'two strong, successful, and strategically focused companies'.
In mid-July, the company will create a wholesale and food specialist with the brand name Metro, and a consumer electronics company under the brand Ceconomy.
The demerger was approved at the company's AGM in February, however, a number of shareholders, including the MediaMarktSaturn minority shareholder Convergenta, filed lawsuits against the decision.
This week the Higher Regional Court of Düsseldorf (Oberlandesgericht) ruled that Metro Group could proceed with its plans, despite these legal challenges.
"With this court order in relation to the legal challenges of resolution of the Annual General Meeting, we have hit an important milestone," said Olaf Koch, chairman of Metro AG.
"The court’s decision is clearly in line with the wishes of the overwhelming majority of our shareholders. In recent weeks we have consistently worked on the implementation of the demerger, and have now turned onto the final straight."
Following the ruling, Metro Group will initiate the registration of the demerger in the commercial register, and will publish the stock market prospectus for the future of the company.
Last month the group reported that total sales increased by 2.3% to €14.9 billion in 2016.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.