Thai company TCC Group, the largest investor in Berli Jucker PCL (BJC), has recently completed the purchase of Metro Cash & Carry Vietnam from German Metro Group.
On January 7, Metro Group and TCC reported that they have obtained all approvals required to complete the sale of Metro Cash & Carry Vietnam to TCC. TCC will thereby acquire Metro Group’s complete wholesale operations in Vietnam including all 19 wholesale markets and the related real estate portfolio for an enterprise value of €655 million ($711 million).
Metro Cash & Carry Vietnam will continue to operate under its name and to serve with the same focus, products and services over one million professional customers.
Metro Cash & Carry Vietnam started to operate its wholesale business in 2002 and is currently running 19 wholesale stores across the country with more than 3,300 employees. Over the years Metro Cash & Carry Vietnam has invested broadly and continuously in the local trade infrastructure and food hygiene and safety.
BJC and Metro started negotiating on the sale of Metro Cash & Carry Vietnam in August 2014. The purchase of Metro Cash & Carry Vietnam is part of BJC’s plan to become a leading regional player covering the entire value chain and position itself for the ASEAN Economic Community (AEC) era.
The deal failed to finalise until now because BJC’s shareholders did not allow it to go through with the purchase due to the legal and financial issues that would ensue.
Metro Group did not exit Vietnam after this deal as the company in August of last year bought Singapore-based Classic Fine Foods Group (CFF) from private equity firm EQT. CFF’s business comprises sourcing and procurement, import and export, storage and handling, marketing and distribution of high-end fine food products such as dairy, meat, pastry, seafood, high quality perishables, condiments, pasta and dry products. CFF’s customers are five-star hotels, high-end restaurants, airlines, supermarket chains and delicatessen stores, with annual sales of more than $200 million.