June 1 (SeeNews) - Croatia's largest privately-owned business group Fortenova said its Montenegrin subsidiary Mercator-CG signed a deal to acquire the retail facilities of local peer Franca Marketi.
“This is Fortenova Group’s first acquisition in the region, whereby the company has accomplished one of its strategic goals – to secure the strengthening of its store network on the SEE markets and its availability to the customers not only through organic growth, but also through acquisitions of local retailers,” Fortenova said in a press release on Wednesday when it signed the sale and purchase agreement with the Franca family.
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Fortenova did not disclose the value of the deal. The transaction was previously approved by the competition protection agency.
“The merger of the Franca store chain is an important step in our strategic development as it positions us as leader on the Montenegrin market and with around 200 stores the only chain present in all municipalities of Montenegro,” said Ivan Karadzic, executive director of Mercator-CG which operates under the brand IDEA.
Franca will continue to be present on the market under that name, as one of the largest and most recognisable local brands, its executive director Hilmija Franca said.
The Franca retail chain has 67 stores - 13 in the capital Podgorica, eight in Budva and seven in Bijelo Polje, and more than 900 employees.
With this acquisition Mercator-CG will also become Montenegro's largest employer as the deal will increase the overall number of its employees to more than 2,500, Karadzic said.
"The formal takeover and integration of Franca will follow in autumn, as well as further investments and the continued exploration of further merger and acquisition opportunities in retail,” said Zoran Mitreski, executive director of Fortenova for retail.