UPDATE: Magnit signs legally binding agreement to buy SIA Group

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MOSCOW, Nov 2 (PRIME) -- Russian grocery chain Magnit has signed a legally binding agreement to buy pharmaceuticals distributor SIA Group from investment company Marathon Group, Magnit said in a statement on Friday.

The company’s subsidiaries Tander and Selta signed the agreement with Serengate Advisors Limited, part of Marathon Group, to buy SIA Group through acquisition of 100% in LLC MF-SIA. Tander has also sent a request to the Federal Antimonopoly Service asking for preliminary approval of the deal.

Magnit said it hopes to close the deal by the end of 2018.

“According to the legislation, this transaction should be cleared by the Federal Antimonopoly Service. The relevant application has already been sent. Thus, the transaction will be closed not earlier than receiving approval from the regulator. A number of other standard conditions for such transactions are also to be fulfilled. We expect to close it before the end of the year,” a spokesperson for Magnit told PRIME.

Magnit earlier extended its share buyback program by 5.7 billion rubles to 22.2 billion rubles for a possible purchase of SIA Group.

(65.6517 rubles – U.S. $1)

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