German retailer Metro intends to pursue its strategy to split itself into two entities without raising capital.

In March, the retailer stated that it intends to spin-off its food business from its consumer electronics unit.

Financial Times was quoted by Metro chief executive Olaf Koch as stating that the supervisory board had given its approval to the demerger plan.

“The developments of the past few months have confirmed our belief that these two entities with hardly any operational overlaps and synergies will be even more successful when operating independently.”

While the organisational division is planned for the end of this month, an official split and public listing of the two entities are targeted for mid-next year.

Koch said: “The developments of the past few months have confirmed our belief that these two entities with hardly any operational overlaps and synergies will be even more successful when operating independently.”

The split will need approval of its shareholders.

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In March, the retailer stated that its three largest investors, namely Haniel, Schmidt-Ruthenbeck and Beisheim, approved the plan.

According to Bloomberg report, Metro plans to have a 10% interest in the food business.

Since becoming CEO in 2012, Koch has been divesting several businesses, including department store chain Galeria Kaufhof as an effort to reduce debt and streamline the group.