By Neetha Mahadevan
FRANKFURT--German retailer Metro AG (MEO.XE) said Thursday it
has agreed to enter an international purchasing partnership with
Groupe Auchan to combine the strengths of the French retailer and
Metro's wholesale and food-retail divisions.
According to the agreement, the companies will jointly negotiate
on specific international services and conditions for suppliers of
branded consumer products globally. They will also jointly purchase
non-food products that each company will resell individually under
its own brand labels or as no-name labels.
Electronic consumer products are excluded from these two
agreements, Metro said.
"This strategic buying partnership allows us to face the
challenges of trade globalisation and the changing procurement
markets," Auchan Chairman Vianney Mulliez said in a statement.
The cooperation agreement will be effective from November 2014
for negotiations related to 2015. Financial details weren't
disclosed.
Write to Neetha Mahadevan at Neetha.Mahadevan@wsj.com
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