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3/30/2016, 11:04 AM (Source: TeleTrader)
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German retailer Metro soars 10% as split announced

Metro AG will create two independent companies, both separately listed on the stock exchange in order to give companies “full control over their corporate strategies.” According to a statement announced on Wednesday, there will be a wholesale and food specialist group including Metro Cash and Carry stores and Real supermarkets, and consumer electronics products and services group which will include Saturn and Media Markt stores.

The wholesale and food specialist entity will be headed by Olaf Koch, CEO of Metro AG, while the consumer electronics group will be run by Pieter Haas, member of the Management Board of Metro AG and CEO of Media-Saturn.

Currently, the two businesses don’t overlap to a large extent. The demerger should increase customer focus, achieve higher growth and improve operational business. Both companies will carry out separate strategies, making their own acquisition and partnership decisions.

Metro Cash and Carry and related businesses will separate from Metro AG, which will focus on electronics products under a new company name.

The company’s shares soared 9.19% to €23.154 in Frankfurt (10:13 a.m. CET). 

Breaking the News / VP