Indian retail conglomerate, Reliance Retail Ventures Limited (RRVL), has acquired outright Metro Cash & Carry India (Metro India), a wholly owned subsidiary of German retail company Metro AG, for $344 million. 

Entering the country in 2003, Metro India operates 31 large cash-and-carry format stores across the country with about 3500 employees. Through the acquisition, Reliance Retail now has access to Metro India’s wide network of stores in prime locations in the country, further strengthening its physical footprint and an “ability to better serve customers and small merchants”. 

The deal is expected to complete by March. 

“The acquisition of Metro India aligns with our new commerce strategy of building a unique model of shared prosperity through active collaboration with small merchants and enterprises,” said Isha Ambani, director of RRVL. 

In the financial year that ended in September, Metro India recorded $930 million in sales, its best performance since launching in India. 

“We are convinced that in Reliance we have found a suitable partner who is willing and able to successfully lead Metro India into the future in this market environment,” said Steffen Greubel, CEO of Metro AG. 

“This on one hand will benefit both our customers and our employees, for whose loyalty and performance we are very grateful, and on the other hand will enable Metro to focus on accelerating growth in the remaining country portfolio.”

Earlier this year, Reliance Retail was reported to be in talks with London-based luxury department store Fortnum & Mason to bring the retail chain into India. The company also signed a long-term franchise deal with American fashion brand Gap to distribute Gap’s products in the country this year. 

RRVL operates more than 16,500 own stores and partners with more than 2 million merchants across grocery, electronics, apparel, pharmacy, lingerie, home and furnishing, beauty and personal care.