FAS allowed X5 Group to acquire shares of two chains in Siberia
[ad_1]
The Federal Antimonopoly Service (FAS) of Russia has agreed on the acquisition of the X5 Retail Group of the retail chains Slata and Krasny Yar. Conditions for satisfying the application are published on website departments. They relate to social and commercial obligations, as well as the size of the share of companies in one of the municipalities.
“The antimonopoly authority granted the petition of X5 Retail Group for the acquisition of 70% of the shares of retail chains owned by Mayak LLC (Slata supermarket chain) and Smart LLC (Krasny Yar grocery stores), subject to the fulfillment of the instructions of the service,”— according to the FAS.
X5 is the largest Russian retailer by turnover. According to the results of the first half of 2022, the group’s revenue increased by 18.8%, to RUB 1.25 trillion, EBITDA increased by 21.4%, to RUB 159.7 billion, net profit – by 29.7%, to RUB 29 .26 billion rubles year by year. As of June 30, X5 operated 19,770 stores, including 18,550 Pyaterochka stores, 986 Perekrestok supermarkets, and 153 Chizhik hard discounters.
Conditions put forward by the department:
- LLC “Corporate Center ICS 5” and LLC “Smart” must, by October 1, 2023, reduce to 35% the share of the total turnover of food products within the boundaries of only one of the municipalities of the Krasnoyarsk Territory;
- companies need to ensure the fulfillment of all contracts concluded by the acquired companies and additional measures to support food suppliers as part of the fulfillment of additional social obligations assumed;
- margins on certain items of food products during the year from the date of transactions will also be set at a level not exceeding 10% of the purchase price for the following categories of goods: cereals (buckwheat, millet, rice), chilled broiler chicken carcass, pasta, sunflower oil , wheat flour, fresh-frozen herring carcass, salt, tea, apples and chicken eggs;
- and not more than 5% – for white cabbage, potatoes, beets, onions, kefir, butter, milk, sugar, cottage cheese and white bread.
FAS received X5 Group’s petition for the purchase of a 70% stake in two retail chains from Siberia “Slata” and “Krasny Yar” on August 15. If the deal is closed, the chains will continue to operate under their own brands, and the procurement and logistics processes will be integrated with X5.
Read more in the publication “Kommersant” “X5 fortified behind the Urals”.
[ad_2]
Source link
