Düsseldorf, May 8, 2019

Today METRO AG has concluded an agreement on exclusive negotiations regarding the sale of its hypermarket business and related business activities ("Real") with a consortium led by redos.

The agreement provides that Real shall be sold to redos as a whole. METRO AG shall initially retain a participation of 24.9% in the operative business of Real and has a put option that shall be exercisable at the earliest after three years.

The current status of the negotiations implies an enterprise value of approximately EUR 1 billion, an equity value of approximately EUR 0.5 billion and a net cash inflow of approximately EUR 0.5 billion. Based on this, METRO AG will impair the value of the hypermarket business in the amount of EUR 385 million in its half-year financial accounts.

The aim is to conclude a sale agreement ("Signing") on the basis of an in-depth due diligence in summer 2019. If and under which conditions a Signing regarding the hypermarket business may be concluded between METRO AG and redos depends on the further course of the negotiations.

A potential Signing is also subject to the approval of the Management Board and the Supervisory Board of METRO AG. The completion of the transaction depends on the completion of further conditions. In particular, clearances by the anti-trust and regulatory authorities would be required.