Billa, the Central European arm of German retail giant Rewe, has completed the takeover of Russian supermarket chain Citystore.
Rewe said today (4 April) it has received competition authority clearance for the acquisition of Citystore, which is owned by Turkish conglomerate Enka. The chain comprises of 17 supermarkets, all of which are based in Moscow or the region of Moscow.
“The acquisition in Russia stresses the strategic importance of international business for Rewe Group,” said Alain Caparros, CEO of Rewe Group. “Meanwhile, we earn about a third of our sales outside Germany. Eastern Europe is developing as the driving force for growth abroad.”
The acquired locations in the greater Moscow area will be converted into the Billa format and integrated into the existing distribution network over the next few months, the company said.
In addition, by the end of the year, Rewe said it plans to open ten new Billa stores in Russia.
“The Russian market is a growth market for us, where we see great potential. In particular because of the greater Moscow area has a high purchasing power, “said Frank Hensel, CEO of Rewe International. “So we will exploit in the future, especially in this region, our further development opportunities – one end of the story is far from being achieved.”