Russia’s X5 Retail Group to acquire smaller rival Kopeyka for $1.1 billion
07 Dec 2010
X5 Retail Group N V, the largest retail company in Russia in terms of sales, yesterday said it planned to acquire its smaller rival Kopeyka, in a deal worth at least 35 billion roubles ($1.1 billion) and killing a potential rival bid from Wal-Mart Stores.
X5 is the largest retail company in Russia in terms of sales. As at 30 September 2010, X5 had 1,630 company-managed stores and 632 franchisees operated stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,232 soft discount stores, 289 supermarkets, 65 hypermarkets and 44 convenience stores.
X5 was formed through the 2006 merger of discount store operator Pyaterochka and supermarket chain operator Perekrestok.
For 2009 X5, which is controlled by billionaire Mikhail Fridman's Alfa Group, had sales of $8.7 billion and $5.2 billion for the first half of 2010.
Closely held Kopeyka is the three-largest discount store operator in the Russian food retail market in terms of revenue and number of stores. It operates more than 660 stores and has plans to expand to 700 stores by end 2010.
Kopeyka operates discount stores in the European part of Russia, with more than 50 per cent of its business operating in Moscow and Moscow region.
