Rewe, the German retailer, has refused to be drawn over reports in Russia linking it to the acquisition of local retail chain Nyam-Nyam.

Reports have claimed that Rewe's Billa arm has agreed to buy the chain for US$100m, with a deal said to be completed next month.

However, Rewe has stayed tight-lipped over the speculation. "As a matter of priniciple, we do not comment on market rumours," a spokesman for the company told just-food today (20 August).

Billa runs 36 supermarkets in Moscow and is set to open its first cash-and-carry outlet later this year.