Major Russian supermarkets amalgamating

RUSSIA / FSU POLITICS - In Brief 21 May 2021 by Alex Teddy
On May 19 it was announced that the chains are uniting. Magnit is buying the discount stroe Dixy for USD 1.25 billion. Mon May 20 Lenta announced it will buy the Billa stores for USD 263 million. Magnit is Russia's main supermarket brand.The Russian supermarket sector was fragmented. That is now changing. The 5 biggest chains control 30% of the market. That is much lower than in EU countries.Tech firms such as Yandex, Mail.Ru and Ozon are allm in online food retail. They can deliver in minutes on connurbations.Magnit will get 2 600 Dixy stores. Half are in Moscow and 18% are in St Petersburg. Magnit will then strive to grow in the regions where it has been feeble until now. However, Magnit has always been strong in south Russia.X5 Retail Group is a major rival of Magnit.Magnit's main shareholder is VTB Bank.The competition regulator has yet to approve the merger. It is probable that approval shall be granted. If this happens Magnit will own 24 000 stores. The Magnit's revenue would likely be 6% behind the combined revenue of X5 which owns Pyaterochka and Perekrostok. Expect a price war between X5 and Magnit. Earlier in 2021 X5 said it aimed to control over 15% of the food retail market. Magnit has the same ambition.Dixy is under the DKBR conglomerate.Magnit's shares rose 3% after the deal was announced. Magnit probably wants to acquire more assets.Lenta bought Billa's 161 stores. Lenta is concentrating on Moscow, St Petersurg and Novosibirks. The company is striving to expand nationwide. The goal is to double saves by 2026 and be number 1 in food retail.Lenta is now the 4th biggest in Moscow in food retail. It mainly has hyperarkets in residential areas.Yandex, Mail.Ru...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2025 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.