Dusseldorf-based Metro gets takeover offer from Czech billionaire

Two investors in Metro AG launched a takeover offer for the German food distributor, saying they wanted to guide the company through its recovery. Dusseldorf-based Metro has received an acquisition offer from Czech billionaire Daniel Kretinsky’s EP Global Commerce VI GmbH and Slovak investment partner Patrik Tkac, according to a filing. The bid of euro 16per ordinary share and euro 13.80 per preferred share values the company at euro 5.8 billion ($6.6 billion).

“We are strongly convinced that Metro has all the prerequisites to be a long-term successful company,” Kretinsky said in a statement, adding that the buyers have several “necessary changes in the best interest of the company” in mind.

Once one of the world’s biggest retailers, Metro has struggled since splitting off from its Ceconomy electronics arm two years ago, a move that was designed to boost the shares of both but backfired. The food business has lost market share to discount grocers including Aldi and Lidl, and it’s been dragged down by its exposure to Russia, where sanctions and a low oil price made business difficult. That’s led to substantial losses for Metro’s biggest shareholder, Franz Haniel & Cie, which had already reduced its stake and will now bow out.

The bidders said Metro needs to make changes to its organisation, business and processes to keep competing in a changing landscape.