Russian grocery retailer X5 Retail Group announced today (29 September) that it has completed the acquisition of Moscow-based chain Ostrov.

X5 Retail paid US$38m, including debt, for Ostrov’s 16 stores in Moscow and the Moscow region, encompassing 12,300 square metres of selling space.

X5 Retail, which is Russia’s largest retailer in terms of sales, said it will convert around half the acquired outlets into supermarkets and the rest to discounters.

The move comes a fortnight after the country’s anti-monopoly watchdog gave X5 Retail approval for the acquisition.

X5 Retail said Ostrov, which was established in 1995, posted RUB1.5bn (US$49.3m) revenue in the first half of 2010.