The sale of the 250 Extra supermarkets in Germany – and potentially some of its other brands – would enable Metro to concentrate on driving global growth at its larger businesses, such as Metro Cash & Carry.
A number of parties in Germany and overseas have expressed their interest in buying Extra, it is understood. A Metro spokesman declined to comment on speculation surrounding a potential disposal, but said: “We are checking different options regarding Extra.”
In September, Metro hired new executive chairman Eckhard Cordes, who has a reputation for shedding unprofitable businesses compared with former chief executive Hans-Joachim Körber.
Körber, who stepped down last month, is thought to have had a sentimental attachment to Metro’s portfolio, which includes Real hypermarkets.
Specialist retail adviser MHE Retail chairman Edward Whitefield said: “I think the time has come to consider the divestment of various businesses to enable them to maximise growth. It makes sense entirely – the group is running too many different formats.” He believes Metro should concentrate on its Metro Cash & Carry and Media Markt brands.
This autumn, speculation has intensified in the German media that struggling Metro department store Kaufhof may consider merging with rival Arcandor.
Whitefield said that a wider break-up of Metro could happen relatively soon, following in the footsteps of Dutch grocery group Ahold, which sold its US Foodservice catering business to a consortium of private equity firms Kohlberg Kravis Roberts and Clayton, Dubilier & Rice in July.
For the three months to the end of September, Metro increased total sales by 10.8 per cent to 15.7 billion (£11.07 billion). Sales at Kaufhof fell 1.9 per cent to 814 million (£573.8 million).
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