German retail giant Metro has sold its cash-and-carry operations in Vietnam to Thailand’s Berli Jucker for US$876m.
“We strongly believe that the proposed transaction will create long-term shareholder value for both parties,” said Metro’s Olaf Koch in a company statement. “Our Thai partner sees a great strategic synergy potential and develop opportunities for Metro Cash & Carry Vietnam.”
Metro said the deal would boost earnings in the 2014/15 fiscal year and allow the company to refocus its investments while strengthened its balance sheet.
The deal is still subject to board approval, but is expected to close in the first half of 2015, with Berli Jucker taking over the 19 cash-and-carry stores in Vietnam that have been operating since 2002.