German Metro Group has unveiled the details about the company split into two separate entities: one with a focus on consumer electronics, the other grouping Metro's food and wholesale divisions.
Shareholders get share in both groups
The one that focuses on food and wholesale will be called METRO, while the consumer electronics company will be called CECONOMY. Both will function independently and appear on the stock exchange as separate entities as well.
CECONOMY will own Media-Saturn, active in fifteen European countries and market leader in nine of those. "We are the number one in European Consumer Electronics and we have created an excellent starting position for our upcoming independence through a comprehensive realignment. We currently generate 22 billion euro in annual sales and have nearly 2 billion customer contacts each year", future CEO Pieter Haas said.
The new METRO is largely Metro Cash & Carry and hypermarket chain Real's current activities. The former is active in 35 countries, while there are 285 Real stores in Germany.
Every Metro Group shareholder will get 1 share of METRO and one of CECONOMY at the split. CECONOMY will also get 10 % of METRO's shares, as a purely financial participation. The vote on the split will take place on 6 February 2017.