The Austrian supermarket chain Billa have requested permission from the Russian competition authority to take over the supermarket chain Citystore. Although Citystore is specialized in the food trade the chain is run by the Turkish building company Enka Insaat.
Enka took over the chain in 2007. At that stage the chain controlled ten shopping centres and 52 supermarkets in various Russian towns. Enka had from the beginning plans to sell the supermarket chain. Some supermarkets were already rented to the French chain Auchan in the meantime. Other shops in the region had to be closed during the crisis.
Citystore still have 17 supermarkets in Moscow, of which seven are their own and ten have been rented out on long leases. According to an estimate by Sergej Tschagin, investment expert of NAI Becar, the selling price may well be in the region of 100 million American dollar. An analyst of Uralsib mentioned that a price of between 70 and 100 million dollar would be realistic.
Billa has been represented in Russia since 2004. At that time there were 72 Billa supermarkets, most of which are situated in Moscow. Financial problems have been in the way of the development of the Russian Billa partner Marta. Finally this venture was ended in 2010. Marta was bought out for an amount of 10 million euro. At that time already the spokesman of Billa, Corinna Tinkler, announced that
Billa had plans to expand. In the meantime the ideal take-over candidate appears to have been found. It is unlikely that the competition authority will intervene.
Citystore still have 17 supermarkets in Moscow, of which seven are their own and ten have been rented out on long leases. According to an estimate by Sergej Tschagin, investment expert of NAI Becar, the selling price may well be in the region of 100 million American dollar. An analyst of Uralsib mentioned that a price of between 70 and 100 million dollar would be realistic.
Billa has been represented in Russia since 2004. At that time there were 72 Billa supermarkets, most of which are situated in Moscow. Financial problems have been in the way of the development of the Russian Billa partner Marta. Finally this venture was ended in 2010. Marta was bought out for an amount of 10 million euro. At that time already the spokesman of Billa, Corinna Tinkler, announced that
Billa had plans to expand. In the meantime the ideal take-over candidate appears to have been found. It is unlikely that the competition authority will intervene.