Germany's Metro sells German, Belgian department store business to Hudson's Bay for $3.2B

MarketsAssociated Press

German retail and wholesale group Metro AG is selling its department store business in Germany and Belgium to Canadian retailer Hudson's Bay for just over 2.8 billion euros (around $3.2 billion).

Metro said Monday that the deal includes the Galeria Kaufhof chain in Germany and Galeria Inno in neighboring Belgium, along with the business's real-estate portfolio.

Continue Reading Below

Metro said it expects to reduce its net debt by 2.7 billion euros thanks to the transaction and foresees a roughly 700 million-euro boost to pre-tax earnings.

The deal is expected to close at the end of September.