FRANKFURT (BLOOMBERG) - Metro AG said it plans to split in two in a move that will separate Real hypermarkets and Cash & Carry food wholesale stores from the Media-Market and Saturn electronics chains.
While no final decision has been made, the split should take place by the middle of next year, Metro said in a statement Wednesday. The wholesale and supermarket operations would be spun off, it said.
Metro jumped as much as 10 per cent in Frankfurt, boosting the company's market value to about 8.8 billion euros (S$13.6 billion). A separation would mark the next chapter in the evolution of the German retailer, which sold its Kaufhof department-store chain last year and its Vietnamese unit in 2014.
"The demerger will unlock value potential at Metro Group and as such significantly increase stock market value," Metro said.
Metro shareholders will hold shares in both companies in accordance with their current stakes, according to the statement.