X5 Retail Group today (21 November) announced it had closed a deal that will secure the acquisition of 100% of Metronom AG, following the approval of the supervisory board of X5 and statutory government approvals, including antimonopoly authorities.
Russia’s largest retailer said that as a result of the deal it has acquired retail premises of approximately 33,000 square metres in Moscow, as well as a wholly owned distribution centre and office building in central Moscow.
X5’s Pyaterochka also acquired 16 supermarkets in Moscow, with the rights for the retail operations in the Russian Federation under “Merkado” and “Merkadona” trademarks.
The total value of the transaction was US$200m, of which the enterprise value of the operational business was approximately US$50m, X5 said.
Lev Khasis, group CEO, commented: “We are happy to announce the closing of a transaction which gives us a valuable addition to our real estate portfolio but also significantly enhances our already leading position in the most important retail market of Russia – the city of Moscow. The Merkado supermarkets will be integrated into either the Perekrestok or Pyaterochka formats and we will ensure that the services of the acquired chain will be quickly brought to the level of the group’s existing quality standards.”