German retail giant Metro announced it will create two separate units
Frankfurt - AFP
German retail giant Metro announced Wednesday that it will spin off its different businesses into two separate units, each to be listed on the stock exchange.
"The management board of Metro is preparing the creation of two independent and sector-focused companies through a demerger of the group," Metro said in a statement, adding that it would create a wholesale and food specialist group and a consumer electronics products and services group.
"Both entities would become individually stock-listed, with their own distinct profile, management and supervisory boards," Metro said.
The aim would be to give each of the companies and their respective management full control over their corporate strategies.
"This will further increase customer focus, accelerate growth of the businesses, simplify structures and improve time-to-market and operational excellence," it argued.
Moreover, both entities would be able to independently pursue acquisition and partnership strategies, enabling them to define their own expansion strategies.
Metro said its management and supervisory boards "will make a decision on the contemplated demerger of Metro group after a period of intensive consultation and review."
Should the boards and shareholders be in favour, "implementation of the demerger is aimed for mid-2017," Metro said.