Wholesale and food retailer Metro Group Wholesale & Food Specialist Company has signed a joint venture (JV) agreement with Singapore-based Yoma Strategic Holdings in order to develop a one-stop food distribution platform in Myanmar.
Under the terms of the agreement, Metro will hold an 85% stake in the JV, called Metro Wholesale Myanmar, while Yoma will own the remaining 15% equity.
Metro management board chairman Olaf Koch said: "I'm pleased that Metro is now entering Myanmar, such a promising market that offers abundant opportunities for our B2B wholesale business.
"The establishment of the joint venture with Yoma Strategic Holdings marks an important step for this meaningful expansion.
"We are convinced that Metro’s proven expertise in areas such as food safety and supply chain management will strongly contribute to the development and upgrade of the local supply and distribution infrastructure."
Metro intends to begin constructing a depot for wholesale distribution at Yangon's Thilawa special economic zone from March.
Expected to open in 2018, the depot is expected to be a one-stop wholesale distribution platform for retailers to buy more than 3,300 food and non-food products.
It will additionally provide customised services to customers, such as hotels, restaurants, catering firms, independent small retailers and offices.
Aimed at addressing the needs of local professional customers, Metro will leverage the logistics and warehousing infrastructure of Yoma Strategic.