Metro sells majority stake to Wumei

German wholesaler Metro AG's decision to sell a majority stake in its Chinese operations to Beijing-based Wumei Technology Group has highlighted the growing challenges faced by international retailers and the rise of domestic retailing companies.

Metro said it would sell close to 80 percent of its stake in the Chinese operations and retain a 20 percent stake. The transaction values Metro China at an implied total enterprise value of 1.9 billion euros ($2.09 billion).

Jason Yu, general manager of Kantar Worldpanel, said the price indicates the investors' optimistic views on Metro's profit capabilities.