German retailer Metro has proposed to split the company in two parts. The wholesale and food business of the company will be listed separately and the consumer electronics business remaining part of the existing company.
Metro expects that this step will help it in opening new growth perspectives and boost stock market value by allowing the two companies to focus on their respective activities. It is also expected that it will create possibilities for acquisitions. The split is expected to be completed by mid-2017.
The proposed split, which would see shareholders receiving one share in the new company and one in the existing company for each share they currently hold, needs to be approved by the management and supervisory boards.
Metro’s three anchor shareholders – Haniel, Schmidt-Ruthenbeck and Beisheim – had indicated they would support the process.
The split is expected to be completed by mid-2017
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