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Nov 15, 2023 19:47 EEST
November 15 (SeeNews) - Croatia's largest privately-owned business group Fortenova said on Wednesday its Slovenian retail unit Mercator signed a deal for the acquisition of 100% of the shares of Slovenian retailer Engrotus.
The merger between Mercator and Engrotus will strengthen the market position of both retailers and provide new development opportunities for Slovenian suppliers and employees, Fortenova said in a press release.
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Pending approval of the deal by the Slovenia's Market Competition Agency, no details of the contract or further development plans of the merged companies can be disclosed, Fortenova added.
According to Slovenian news agency STA, the transaction is reportedly worth 30 million euro ($32.6 million).
"It is our great pleasure to close the year with yet another great acquisition in retail. Following Franca markets in Montenegro, the acquisition of Tus stores is the second major expansion of our retail network within a short time, whereby we have definitively affirmed the status of the region’s strongest domestic retail chain, proving what we had announced when we integrated Mercator into Fortenova Group’s network in 2021," Fortenova Group’s CEO Fabris Perusko said in the press release.
The deal does not include the operations of Tus drugstore chain, which is in the process of being spun off.
"After several months of negotiations we have decided to proceed with a buyer that, in our opinion, is the best choice for our employees, business partners and the development of the company’s core business," the head of the Tus Group, Andraz Tus, said in the press release on behalf of the sellers, the companies Tus Holding and AH Invest 1.
According to web portal The Slovenia Times, if the transaction is approved, Mercator and Fortenova will control some 35% of Slovenia's retail market among themselves. Mercator controls 25% of the market and runs some 460 stores, while Engrotus holds around 10% market share with 260 stores, The Slovenia Times said.
Slovenian newspapers Delo and Finance reported that Fortenova and Mercator outbid German retailer REWE to buy Engrotus, according to The Slovenia Times.
($ = 0.922 euro)
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