Canadian retailer Hudson's Bay plans bidding for Metro AG's Galeria Kaufhof
05 Jun 2015
Canadian retailer Hudson's Bay Co is planning to table a binding bid for Metro AG's department store chain Galeria Kaufhof, Reuters yesterday reported, citing a source familiar with the matter.
Hudson's Bay's new CEO Gerald Storch, had on Tuesday said that he is keen to expand the company's operations overseas, but did not comment directly on Kaufhof.
Metro, Germany's largest retailer has for long been looking to sell Kaufhof in order to focus on its core cash-and-carry and consumer electronics businesses.
Last month it said that it was in talks to sell Kaufhof on the condition that it got an appropriate price, a convincing plan for the future of the chain, and solid financing.
Austrian investor Rene Benko, who owns retail chain Karstadt had in late 2011 bid for Kaufhof. German daily business paper Handelsblatt had reported that Benko's offer was around €2.9 billion ($3.21 billion), but Metro put the sale on hold.
Dusseldorf-based Metro is the world's fifth-largest retailer, which runs cash and carries, Europe's biggest consumer electronics chain, hypermarkets and department stores.
The company has over 2,200 business outlets in 32 countries in Europe, Africa and Asia and has around 265,000 employees. In 2014, it reported net profit of €127 million on revenue of €63 billion.
Metro has 104 department stores and 16 sporting goods stores in Germany in more than 80 cities and 16 in Belgium operating under the sales division "Galeria Inno"
The range includes international brands in the mid- to upper mid-price segment and has an annual turnover of €3.1 billion.
Hudson's Bay, North America's oldest company, operates 90 department stores across parts of Canada. It is the main brand of Hudson's Bay Company, North America's oldest company. It has its headquarters in the Simpson Tower in Toronto.
With an annual turnover of $6.5 billion, the Toronto-based company focuses on fashion apparel, accessories, and home goods.
