the acquisition: A Done Deal

The prominent German retail conglomerate, Metro AG, is now under the control of Czech billionaire Daniel Křetínský. His investment group, EPCG, has secured a controlling stake in the company, known for its Makro brand. This move marks a significant shift in the European retail landscape.

EPCG, already a major shareholder with a 49.9% stake, launched a public offering in March to acquire the remaining shares at a premium. The deadline for this offer concluded between Wednesday and Thursday midnight. While final results are pending post-Easter,the acquisition solidifies Křetínský’s influence over Metro’s extensive operations.

Questions about further procedures cannot now be answered during the redemption process. The company will probably publish the final results of the public offer only after Easter.

Daniel Častvaj, EPCG spokesman

Metro’s Extensive Reach and Frankfurt Exit

Metro AG boasts a substantial presence with 623 stores across 21 European countries. These include both traditional department stores and wholesale warehouses. in the Czech Republic alone, the network encompasses eight Makro stores.

concurrently with the acquisition, Metro AG’s shares have been delisted from the Frankfurt Stock Exchange after nearly three decades of trading. This decision, prompted by Křetínský in February, was described as a logical step given the company’s ongoing transformation and the pressures of short-term performance expectations. The exchange has already selected Friedrich Vorwerk Group,a pipe manufacturer,as Metro’s replacement in the SDAX index,which tracks 70 smaller,significant companies.

Křetínský’s Vision and Management Support

Křetínský emphasized that the transformation process at Metro AG remains in the hands of the existing management team, expressing his full support for their efforts. This suggests a strategy of continuity and leveraging existing expertise to drive future growth.

A History of Investment

Křetínský’s involvement with Metro AG dates back to 2018, when he initially acquired shares from Haniel holding, a company managing assets for a long-standing German business family since the 18th century. Other family-owned entities, Meridian and Beisheim, retain a 24.99% stake and have, until now, resisted acquisition attempts.

The Financial Details

The public offering in February saw Křetínský offering €5.33 per Metro share, a premium over the previous trading price of €3.91.Despite recent financial challenges,including suspended dividends and a 37% stock decline last year,the overall transaction,encompassing previously acquired shares and the current offer,amounts to approximately 50 billion Czech crowns.

Leadership Changes at Metro

during a Metro AG general meeting in February, Roman Šilha, Křetínský’s deputy, was appointed as the head of the supervisory Board. Šilha previously served as a member of the board. The council also saw the retention of two other Prague-nominated members and the addition of a fourth, bringing the total number of Supervisory Board members to 20.

Křetínský’s Broader Retail Ambitions

Křetínský’s ambitions extend beyond Metro AG. Last year,he acquired Casino,a major French retail network. He also holds stakes in FNAC Darty in France and Unieuro in Italy. In the Czech Republic, he co-owns the Heureka shopping search engine with PPF.

EPCG, the vehicle for Křetínský’s Metro AG acquisition, is a key component of the broader EP Group. This group encompasses diverse holdings, from traditional energy sectors to the British postal service, Royal Mail, which is also undergoing a takeover process.

Through EP Group, Křetínský controls a 56% share in EP Global Commerce, with the remaining portion held by Patrik Tkáč and his associates from the Czechoslovak investment group J&T. Tkáč and Křetínský have a long history of collaboration, including their involvement with Metro AG.

In Germany, Křetínský also owns Leag, a significant energy company with substantial coal deposits and four power plants in East Germany. Furthermore, he recently agreed to invest in the metallurgical group Thyssenkrupp.