Wal-Mart has reportedly claimed disagreements with potential acquisition targets in Russia over price have hindered its plans to enter the market.
The US retail giant has indicated that it is still seeking an “appropriate” means to enter Russia and has refused to rule out either acquiring a local chain or opening its own stores in the country.
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The firm has also been reported to have held talks to buy local retailer Lenta.
However, in an interview with Bloomberg international chief Doug McMillon said that an obstacle in Russia has been striking a deal on price.
“One of the things that has been a hindrance in Russia is just an agreement on price,” McMillon said late last week. “If you wanted to have some scale to start out, you have to have a willing seller and therefore you have to come together on valuation. Until something is done, it’s not done.”
Wal-Mart, the world’s largest retailer, has had an office in Moscow to study the Russian market since 2008. Since then, the retailer has been linked to a series of local companies, including the likes of Lenta and Kopeika.
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By GlobalDataMcMillon said the office had helped Wal-Mart understand the “risk” of entering Russia but he refused to be drawn on a possible timetable for entry.
“We think, long term, Russia is a big enough market that it’s certainly worthy of attention,” he told Bloomberg. “But we don’t have to be there this year.”
