Metro is selling its Extra business consisting of 245 Extra supermarkets to German cooperative Rewe for an undisclosed amount. The German retailer said that the move is aimed at cutting debt as well as focusing on the food business of its Real stores which are expanding into eastern Europe and Turkey.
Metro is selling its Extra business consisting of 245 Extra supermarkets to German cooperative Rewe for an undisclosed amount. The German retailer said that the move is aimed at cutting debt as well as focusing on the food business of its Real stores which are expanding into eastern Europe and Turkey.
The supermarkets, which last year reported annual revenue of about EUR 1.6 bn, are expected to be transferred on 1 July 2008. The properties have a sales area of more than 400,000 m2. The transaction is expected to cut Metro's debt by around EUR 350 mln.
'The sale of Extra enables us to concentrate our food retailing operations solely on Real hypermarkets, and thereby focus more effectively on further successful repositioning in Germany,' Chief Executive Officer Eckhard Cordes said.
Cologne-based Rewe had already acquired about 119 Extra stores from Metro three years ago.
