Retailer Metro said to enlist Citi, JPMorgan to review China operations

Retailer Metro said to enlist Citi, JPMorgan to review China operations

A Metro AG logo sits on a sign beyond a delivery truck outside the company's wholesale food distribution depot in Weiterstadt, Germany, on Wednesday, April 25, 2018. Metro AG, the German food wholesaler, cut its profit and sales outlook for the year because of slowing business in Russia and higher costs to rejig the company after splitting off its consumer-electronics chain. Photographer: Krisztian Bocsi/Bloomberg

Metro AG, the German big-box retailer and wholesaler, is working with Citigroup Inc. and JPMorgan Chase & Co. to review options for its Chinese operations, according to people familiar with the matter.

The business could be worth about $1.5 billion, based on earnings and the valuations of its rivals, the people said, asking not to be identified as the details aren’t public. Including real estate, the Chinese unit could be valued at more than $2 billion, one of the people said. The company is exploring options such as selling a minority stake or finding a strategic partner for the business, people familiar with the deliberations said last month.

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