Bloomberg: Metro Carry & Carry being sold to Thai Company

Metro has signed a deal whereby it's VN stores are being sold for USD$876-million to Berli Jucker of Thailand. The HCM Department of Investment and Planning and Tax Department is looking for at least 22% tax on the transfer!

The HCM Tax guys are a little bit excited about not being informed directly, they learned of the deal from Bloomberg, and others, when BJC issued a Press Release that said: “BJC will take over the complete operational business of Metro Cash & Carry VietNam including all 19 wholesale stores and the related real estate portfolio for an enterprise value of EUR655-million.”

The General Taxation Department said in 2013 that the retailer had repeatedly declared losses of up to USD$7.5-million annually in VietNam and was therefore exempt from taxes. One of the oldest tricks in the book. The Koreans have tried this one before.

Financial reports from Metro claim its revenues jumped from EUR38-million in 2002 to EUR516-million last year.

Metro opened its first cash-and-carry store in VietNam in 2002, since then it opened 19 such stores across VietNam that employ some 3,600 people, making VietNam it's No. 2 Asian market after China.

Metro is well known for it's fine selection of foods from around the world, including cheeses imported from Australia and New Zealand.