The HCMC Department of Planning and Investment has not received a proposal from Metro Cash & Carry Vietnam (MCC Vietnam) for transferring its wholesale chain in the country to Thailand’s Berli Jucker Public Co. Ltd. (BJC) though the news about this broke last August.

International media reported that shareholders of BJC had objected to its acquisition of the Metro stores in Vietnam. According to Bangkok Post, BJC shareholders expressed concerns at a meeting last week that the company might face financial and legal risks if it proceeded with the 655-million-euro deal.

Aswin Techajareonvikul, president and CEO of BJC, told reporters in HCMC last year that BJC and German firm Metro had reached agreement on the transfer price after over a year of negotiations and that both sides were planning to write to the HCMC Department of Planning and Investment in October seeking approval for the deal.

Aswin furthered the transaction was expected to be concluded in the first half of this year and BJC would be allowed to use the Metro brand for 18 months after the acquisition deal was completed.

Aswin noted BJC saw huge potential in product and service distribution in Vietnam and that acquiring the Metro stores would allow the company to tap the Vietnamese market.

As regulated, the application for the MCC Vietnam transfer should be submitted to the HCMC Department of Planning and Investment as the company is headquartered in this city before it is forwarded to relevant ministries for consideration.

The communications department at MCC Vietnam said it was not allowed to comment on the transfer as it was a matter between leaders of Metro Group and BJC.

Asked to comment on the transaction, a former official of the Ministry of Planning and Investment said domestic and foreign enterprises are permitted to transfer stakes if the parties concerned fulfill their obligations in line with related regulations.

Metro set foot on the Vietnamese market more than a decade ago when the local distribution and retail sector was not opened to foreign direct investors. With its pledges not to compete directly with domestic retailers, the group was licensed to inaugurate wholesale stores in big cities and MCC Vietnam now operates 19 wholesale stores and two fresh vegetable and fish distribution centers nationwide.

Almost all stores of Metro Vietnam are located at the gateways of big cities in Vietnam and this might be a reason for BJC to agree on spend 655 million euros taking over the complete business operations of MCC Vietnam, including all the 19 wholesale stores and the related real estate portfolios.

Aswin of BJC told reporters last year that the amount of money spent on the acquisition of MCC Vietnam was reasonable as the wholesale network would back its product and service distribution activities in Vietnam.

He said as Metro’s business structure was appropriate for BJC, it could help BJC grow faster than a new business start-up. Besides, nearly 4,000 well-trained Vietnamese staff of MCC Vietnam are also an important factor to support the company to grow in this market.