Separated Metro businesses will present opportunities, says Koch | Progresiv
Metro Group chief executive Olaf Koch believes the recently announced separation of the group's cash & carry/hypermarkets business and its consumer electronics division will present new opportunities for both sides of the business, Barclays European Food Retail Equity Research has reported. 
In a news bulletin, 'Metro AG: Break-up opportunities', Barclays referenced the Metro CEO as saying that 'both entities will be investment grade', and that 'shareholder value creation is the key guiding principle for the proposed transaction'.
Koch also expressed his belief that 'both entities can potentially attract higher earnings multiples independently than has been the case in the conglomerate structure', Barclays noted.
In terms of the Cash & Carry and Real hypermarkets businesses, Barclays noted that Metro is looking to enter 'new international cash and carry markets in time'.
In terms of Real, a key item on the agenda is addressing the retailer's wage structure, which is '25-30% more expensive than its German peers'. Metro hopes to reach an agreement on a new wage structure with Real's union representatives in the coming months. (www.esmmagazine.com)
