KARACHI: In what would be the first deal of its kind, two of Pakistan’s leading wholesalers – Makro Habib and Metro Cash and Carry – are engaged in talks for a merger, marking what some analysts hope is a new wave of consolidation in a sector that has hitherto been defined by its fragmentation.
Officials from the Metro Cash and Carry confirmed that they were in talks for a merger with Makro Habib. Metro officials implied that they were in advanced stages of the negotiation since they mentioned that the merger would be subject to the approval of the State Bank of Pakistan. SBP approval would only become a concern once both parties had agreed on the initial outlines of an agreement.
The Germany-based Metro Cash and Carry has five wholesale outlets in Pakistan, two in Lahore and one each in Karachi, Islamabad and Faisalabad and has been operating since 2007. Makro Habib Pakistan – a joint venture between the Dutch wholesale giant Makro and the Pakistani conglomerate House of Habib – also has five stores, three in Karachi and two in Lahore and began operations in 2005. While many local stores have tried to set up rivals to the foreign companies, none of them have the experience and expertise in running large, integrated supply chains necessary for a retail or wholesale chain. Apart from that Imtiaz is really doing good and after these two big stores, Imtiaz has also got a share where ordinary shoppers from almost all classes looking for a wider variety of goods and a better buying experience, compared to others.
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