German group Metro to be Split into Trade and Electro-IT

Economy Jamie Simon
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The German giant Metro, one of the largest corporations in the world trade, with turnover worth around 60 billion Euros will divide the work, following a separate segment of the food retail and e-commerce.

The announcement was made public on the stock market initially in March, but now the company announced that after careful consideration, the board of director approved this decision.

“Having successfully completed the analysis phase of this process, splitting Metro Group into two independent entities, strong and publicly listed beginning to take shape, details of this process are in place,” company officials say. The food division will be headed by Olaf Koch, while the electro-IT activities will be supervised by Pieter Haas. The proposals regarding the management of both companies have been approved by the board of directors (supervisory board).

The Metro Group is now present in 29 countries with over 2,000 stores under several brands. The Germans have more than 220,000 employees and a turnover of almost 60 billion Euros.

This division will have a significant impact on local businesses. Last year, Metro Cash & Carry business locally produced 1 billion Euros from 30 stores. When it comes to hypermarkets, on the local market there are only four Real stores left after another 20 were taken by Auchan in an international transaction of over 1 billion Euros announced in the fall of 2012. The transaction was completed after over a year later.

The Auchan hypermarkets bought Real from the Germans on four markets – Romania, Poland, Ukraine, and Russia.

Last summer Germans also announced the sale of other divisions, Kaufhof shopping arcade. The buyer was the Canadian Hudson Bay Group Co., which paid 2.8 billion Euro.