DUISBURG, Germany, April 7 (Reuters) - German family-owned investment group Haniel FHANI.UL has a budget of 1.3 billion euros ($1.78 billion) for potential acquisitions, Chief Executive Stephan Gemkow told a news conference on Monday as the group published its annual report.

Haniel received about 2 billion euros in proceeds following the sale of its stake in German drugs distributor Celesio

CLSGn.DE to U.S. drugs distributor McKesson MCK.N .

Haniel has been shedding assets to offset a massive 2012 write-down on its holding in German retailer Metro MEOG.DE and reduce a debt burden which stood at 1.6 billion euros at the end of 2013. ID:nL5N0KX4AN

Gemkow said Haniel, Metro's biggest shareholder, did not plan to reduce its holding in Europe's fourth biggest retailer after reducing its stake to about 30 percent from 34.2 percent in late 2012. ($1 = 0.7303 Euros)

(Reporting by Matthias Inverardi, writing by Emma Thomasson)

((+49 30 2888 5081)(Reuters Messaging: emma.thomasson.thomsonreuters.com@reuters.net))

Keywords: HANIEL/METRO