Metro completes $712mn sale of Vietnam business to Thailand’s TCC

The wholesale business in Vietnam of Metro Group has officially been transferred to Thailand's TCC Holding Co., the German retail giant said Thursday.

TCC has acquired all of Metro Cash & Carry Vietnam’s operations, including 19 wholesale stores and related real estate portfolios for an enterprise value of €655 million (US$712.14 million), according to a Metro press release. 

Metro said the deal results in a cash inflow of around €400 million ($434.9 million), adding that payment has already been made.

Olaf Koch, chairman of Metro’s management board, said the transaction will create long-term value for both sides.

“We are confident that the success story of Metro Cash & Carry Vietnam will continue under the experienced hands of TCC and that their extensive businesses in the region will support its further growth,” he said.

Koch asserted that Asia will remain an important growth region for Metro Group, as the German retailer is poised to continue investing there in the further development of its cash and carry business.

Metro also believes that Vietnam's large market potential will be further tapped by TCC's expansion ambitions and strong operational expertise, it said in the press release.

In August 2014, Metro Group initially announced its agreement with Berli Jucker Public Company Limited (BJC) to sell its Vietnamese wholesale business.

In February 2015, BJC's majority shareholder TCC replaced BJC as the acquirer in the framework of an amended sale and purchase agreement regarding Metro Cash & Carry Vietnam.

Metro entered the Vietnamese market in 2002 with its cash and carry wholesale business and was at last operating 19 wholesale stores across the country with more than 3,300 employees. 

Metro Cash & Carry Vietnam generated sales of €507 million ($551.65 million) in the financial year 2014-15.

Metro Group now operates at more than 2,000 locations in 30 countries and employs some 230,000 people.

The company’s revenue reached some €59 billion ($64.23 billion) in the financial year 2014-15.

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