Pyaterocha Holding NV announced yesterday (18 May) that it had completed the merger with Perekrestok Holdings Limited following fulfilment of all relevant conditions to the transaction, including receipt of Pyaterochka shareholder approval.

“We are delighted to announce the completion of the merger between these two highly complementary businesses. Together we will use our new position as the largest food retailer in Russia to deliver enhanced value to all our customers and shareholders,” David Noble, chairman of Pyaterochks’a board of supervisory directors.

The Afla Group, one of the largest financial investors in Russia and long-standing investor in food-retail, together with certain members of Perekrestok management, will control 54% of the enlarged group. Andrei Rogachev and Alexander Girda, founders of Pyaterochka, will retain a combined stake of 21.2%.

Pyaterochka also entered into a facility agreement to finance the US$300m cash element of the acquisition, refinance Perekrestok’s existing debt and provide for a capex facility to fund future expansion.