Ceconomy wants to sell interest in Metro

MediaMarkt's owner Ceconomy has engaged in talks with investment group EP Investment about a possible sale of its interest in Metro, the German food group that also operates through Makro and Real.

 

Share price under pressure

"A decision as to whether as well as on what terms and conditions a purchase agreement can be concluded has not yet been taken," the company said in a statement. The news comes a few days after German investment group Haniel agreed to sell a 7.3 % stake in Metro to EP Investment for an undisclosed amount. The buyer also took an option on the remaining 15,2 % shares still held by Haniel, meaning the shareholder structure at Metro is facing a radical change. 

 

Ceconomy currently owns approximately 10 % of the shares in Metro, but this participation weighs on the group's operating result. Metro's share price is falling, partly as a result of restructuring of the Russian market, and the electronics group is feeling the consequences. Metro and Ceconomy had been parts of an larger Metro Group until last year, when they split up and continued as separate companies. The move was intended to generate annual revenue growth of up to 3 % for both companies, but this promise has not yet been fulfilled.