Retail giants Wal-Mart and Carrefour are among the international retailers competing to acquire Russia’s hypermarket chain Lenta.
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They are joined by other bidders including Germany’s Metro Group, France’s Auchan, Croatia’s Agrokor Group, Finland’s Kesko and American investment fund TPG Capital.
According to reports in Russia, Lenta’s owners are selling a 89% stake in the company. The remaining 11% is held by the European Bank for Reconstruction and Development.
The Russian daily Vedomosti has valued the deal at US$2bn including $500m in debt.
The acquisition is significant for the Russian retail market as the successful bidder is likely to be a western player and will possibly be new to the St Petersburg hypermarket sector. None of the contenders have retail operations in Russia except for Kesko who took over a St Petersburg DIY store chain in 2004.
European companies are clear favourites because of cultural factors, Yulia Gordeyeva, an analyst at IMG, told just-food.
Competition is expected to be stiff due to Lenta’s strong branding and vision, as well as the attractiveness of the Russian market, he added.
