BERLIN, Feb. 19 (Xinhua) -- After prolonged negotiations, the German wholesale group METRO has reached an agreement with the investment company SCP Group on the sale of its hypermarket chain Real, the two companies said Wednesday in a joint statement.
The SCP Group would become the sole owner of the 276 Real stores, numerous properties as well as the digital business, including the online marketplace, the statement said.
METRO expected a net cash inflow of around 300 million euros (324 million U.S. dollars) at an implied valuation of Real at around one billion euros. METRO first announced its intention to sell Real in 2018.
All of Real's approximately 34,000 employees in Germany would be taken over with their current contracts and conditions, METRO and the SCP Group said.
The majority of Real hypermarkets in Germany are to be sold to other retail companies. Fifty stores would continue to operate under the Real brand for the next 24 months.
"Possible options are being examined for each location," METRO and the SCP Group noted. Location closures would only be considered if neither continued operation nor purchase by another retail business could be achieved.
Germany's trade union ver.di noted on Wednesday that the sale of Real to the SCP Group was a "bitter day for Real employees." Ver.di national board member Stefanie Nutzenberger warned of the "destruction" of over 10,000 jobs in the course of the takeover.
The supervisory board of the Russian investment company Sistema PJSFC, which is responsible for financing the takeover, still has to approve the acquisition. Sistema said in Moscow that it was prepared to provide up to 263 million euros.
The transaction has been notified to the European Commission. The closing of the agreement would take place after approval by the antitrust authorities. Enditem
