German wholesaler Metro has rejected a takeover bid from CP Group, which is run by Thai Billionaire Dhanin Chearavanont, for its Vietnam cash and carry business.
A spokesperson for Metro on Thursday said that the Vietnam business was not for sale and that they had rejected unspecified offers, according to Reuters.
The Dow Jones news agency earlier quoted unnamed sources which claimed that, despite the initial rejection, CP Group was still interested in pursuing the deal, which is valued at around $500 million.
Metro is Europe’s fourth biggest retailer. Operating across 32 countries, it has 2,200 outlets ranging from cash and carries to supermarkets, department stores, and consumer electronics stores, and has recently been introducing cost reduction measures in a bid to revive its fortunes. According to Reuters, the company, which derives two thirds of its thirds of sales from Germany and other western European countries, has been divesting operations in non-core markets as well as cutting prices in its cash and carries, revamping some product ranges, and investing in its delivery arm.