May 25 (SeeNews) - Croatian ailing food-to-retail concern Agrokor plans to put its Ljubljana-based unit Mercator [LJE:MELR] in charge of its retail operations in Bosnia and Herzegovina, replacing its peer Konzum, Agrokor's receiver said on Thursday.
"Today, we presented to the Council of Ministers a new concept for Agrokor retail in Bosnia and Herzegovina, which foresees the reintroduction of the Mercator brand to the market of Bosnia and Herzegovina," Ramljak is quoted as saying in a press release issued by Agrokor, following his meeting with Bosnian officials.
Ramljak noted that Konzum's operations in Bosnia have been stable but Mercator's return would improve Agrokor's long term positioning in the country and further development in the regional market.
The concept is yet to be approved by both Konzum and Mercator.
"If the concept is accepted by Konzum and Mercator, it will contribute to the development of the retail market in the country by stimulating competitiveness and will be in the best interest of all customers, employees, suppliers, banks and the state," Ramljak commented.
In 2014, following the takeover of Mercator by Agrokor, Konzum was put in charge of retail operations in Croatia and in Bosnia. Mercator's fast-moving consumer goods stores in Croatia and in Bosnia were leased out at arm's length principle to Konzum.
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