Russia X5 Retail Group To Buy Out More Franchisees

Reuters:

X5 Retail Group, Russia’s largest food retailer by revenue, intends to acquire three franchisee chains in both southern Russia and the Volga region, the state Anti-Monopoly Service (FAS) said on Wednesday.

FAS said in a statement X5 had filed for permission to buy out the Tamerlan group of companies, its biggest franchisee partner, which operates more than 120 Pyaterochka discounter stores in the regions of Samara, Volgograd and Rostov-on-Don.

X5, which is controlled by Russian billionaire Mikhail Fridman’s Alfa Group, declined to comment. FAS said it would review the petition before July 14, 2008.

Natalia Zagvozdina, consumer sector analyst at Renaissance Capital, said the deal could amount to $150-170 million.