Magnit to acquire Dixy Group with 2,651 grocery stores

MOSCOW, May 18 (PRIME) -- Russia’s grocery retailer Magnit has agreed to acquire one of its biggest contenders Dixy Group, the owner of 2,651 stores, at a price based on the business value of 92.4 billion rubles, the deal is to be closed on August 31, Magnit said in a statement on Tuesday.

“Magnit… has reached an agreement, according to which it can buy retail chain Dixy, which currently operates 2,651 stores around Russia,” the company said.

Magnit will acquire 100% of Dixy Holding Limited from Mercury Retail Group Limited.

“The price for the deal is based on the current business value of 92.4 billion rubles and will be adjusted in line with changes of the net debt and the net working capital as of the date of the deal’s closing,” Magnit said.

The deal is yet to be approved by the Federal Antimonopoly Service, and is to be closed on August 31, but the date may be delayed to September 30 under certain conditions.

Magnit President Jan Dunning said that Dixy will continue to operate as a separate legal entity and its stores will retain the brand.

Magnit shares on the Moscow Exchange grew 3.5% to 5,344 rubles at 10:20 Moscow time.

(73.8537 rubles – U.S. $1)

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