* Metro to sell stake in Chinese business to Wumart
* Metro to retain 20% stake in Chinese venture
* Deal subject to regulatory approval (Adds confirmation, details, background)
HONG KONG/DUESSELDORF, Germany, Oct 11 (Reuters) - German retailer Metro has agreed to sell a majority stake in its Chinese operations to local retailer Wumart, Metro said on Friday, confirming an earlier Reuters report.
"This partnership includes the sale of Metro's entire indirect participation in Metro China to a subsidiary of Wumei for an enterprise value of approximately 1.9 billion euros ($2.1 billion)," Metro said in a statement.
Metro will retain a 20% stake in the Metro Wumart China joint venture, and receive proceeds of 1 billion euros, the German retailer said, adding the deal was subject to scrutiny from regulators.
Earlier on Friday, Reuters reported that Wumart Stores had emerged as the front runner to clinch a majority stake in Metro's Chinese business, citing sources familiar with the auction.
Metro's Chinese operations include 95 stores and real estate assets in major cities such as Beijing and Shanghai.
The sale is part of a global reorganization of the wholesaler and comes as China's wholesale and retail sectors are experiencing strong competition from e-commerce players.
($1 = 0.9060 euros) (Reporting by Matthias Inverardi in Duesseldorf, Julie Zhu in Hong Kong and Arno Schuetze in Frankfurt Writing by Edward Taylor Editing by Michelle Martin and Mark Potter)