Metcash to sell China export business to ECG

Company News

by Anna Napoli

Wholesaler, Metcash (ASX:MTS) has announced that eCommerce company ECG (ASX:ECG) is to purchase it’s China export business.

The companies have entered into a binding Heads of Agreement under which ECG will acquire 85 per cent of Metcash Export Services which includes its China-based subsidiary, Metcash Asia.

The combined businesses will offer eCommerce operations and B2B wholesale distribution.

ECG says the Metcash supply agreement gives the company access to quality Australian products at competitive prices. While ECG enables access to key offline wholesale distribution channels in China.

Metcash wholesales and distributes to a number of supermarkets and retail groups in China and operates cross-border e-commerce stores in key platforms such as Alibaba.

Shares in Metcash (ASX:MTS) shares closed 1.03 per cent lower to $2.87 yesterday.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.