Metro Group has revealed a €172m (£109.7m) one-off impairment charge as part of its deal to offload loss-making Makro Cash & Carry UK in May.
Booker paid Metro £15.8m for Makro, while Metro took a 9.99% stake in Booker, worth £123.9m at the time of the deal. Booker bought the business on a debt-free and cash-free basis, but Makro held £154.6m of debt at the end of last year, according to a KPMG report.
Metro and Booker said they would look to “foster a strategic partnership” on buying, supply chain management, marketing, own label and customer service.
Booker undertook not to integrate Makro into its business while the OFT investigates the deal and the two businesses are trading separately.
Losses at Makro deepened to £63.2m in the year to 31 December, while turnover dropped from £818m to £787m.
This week, Metro reported a 1.8% increase in second quarter sales to €15.8bn. Pre-tax earnings before special items increased by 2.5% to €314m.
“Our focus on sustainable growth is paying off. We are already seeing first positive effects on earnings,” said Metro chairman Olaf Koch.