Metro rejects takeover offer from Kretinsky
Author: Thanh Duy Tran
Trading company from Düsseldorf in crisis
The Czech billionaire Daniel Kretinsky wants to take over the Metro Group and has made a takeover bid for it. But the management board of the trading company rejects the offer. This was announced by Olaf Koch, CEO of Metro.
The offer should amount to more than one third of the share value. The company EP Global Commerce led by the investor Kretinsky rates the Düsseldorf-based company with a total of around 5.8 billion euros.
Kretinsky and Tkac joined the metro in 2018
Investors could receive 16 Euro for each common share in the Metro Group and 13.80 Euro for each preference share. Koch regards this as too low. Therefore he advises the shareholders to not sell the shares at the moment.
Thus a competition for the trading company could have started, which affects 150,000 employees. For a long time, the crisis-ridden trading group was considered unsaleable. EPH Holding joined the group in 2018 together with its partner Patrik Tkac. Rumours about a possible takeover were already being heard at that time. Now these rumors seem to have been confirmed.
Kretinsky is convinced that the Metro can be a “successful company” and that he can help the company with a successful growth strategy. There is also a plan what the investor has in mind. According to this plan, the wholesale and retail company shall become a specialist for major customers and suppliers of star restaurants, hotels, caterers and canteens throughout Europe. He also wants to withdraw from the Chinese market.
Takeover of Ceconomy shares already today?
The Metro Group has been in the headlines for months. The restructuring of the group is making slow progress. The four major shareholders Haniel, Schmidt-Ruthenbeck, Beisheim and Ceconomy are investing very little in the company. The retail chain Real should also be sold, but a suitable investor is still not found after months. A takeover by Kaufland, which belongs to the Schwarz Group, does not yet seem to be off the table either.
Furthermore, Kretinsky and Tkac had already reached an agreement with Haniel and Ceconomy on the purchase of the shares. According to insiders, the transfer of the electronics dealer’s shares could still take place today. This would bring Czech investors over 30 percent of the shares.