RETAIL: Mercator Acquisition – Competition Agency Forces Agrokor to Sell Stores in Croatia

Mladen Cerovac, Deputy Director of the Croatian Competition Agency (AZTN), announced that Croatia’s largest food producer and retailer, Agrokor, will have to substantially reduce its retail network in the country before it can get the regulatory approval to take over Slovenia’s retailer Mercator.

In June, after a long negotiation process that lasted several years, Agrokor signed a purchase contract with the Mercator’s ownership consortium, consisting of 12 shareholders, acquiring 53.12% of the company’s shares at a price of €120 per share. Agrokor  will pay €240 million for the majority stake, valued at €452 million.

The new company, Adria Retail Holding, will be present in Slovenia, Serbia and Montenegro, as well as, through Agrokor’s retail arm Konzum, in Croatia and Bosnia and Herzegovina. It is forecasted that Adria Retial Holding will generate yearly revenues of €1 billion and employ more than 60,000 people, thus becoming the largest retailer in Central and Eastern Europe.

The Agrokor Group consists of 38 companies from Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Macedonia, Kosovo, Hungary, and Slovenia. Konzum is the flagship of Agrokor’s retail group and the largest retail chain in Croatia. It is the largest private company in Croatia and one of the leading regional companies, with consolidated total revenues of more than €3.8 billion in 2011…

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