UK electricals retailer has option to buy US$1.9 billion Russian market leader
Dixons has taken out an option to buy a Russian electricals retailer, as revealed by Retail Week in the February 11 issue. The UK's leading electricals retailer has entered into an agreement with Eldorado to take control of the company before 2011. The agreement is on condition that Dixons buys 10 per cent of the company before 2008. Eldorado is valued at US$1.9 billion (£1.01 billion).
The Russian business holds 22 per cent of the electricals market in the country and claims leadership of the Ukrainian electricals market.
Dixons Group chief exectutive John Clare (pictured) said: 'Russia is a market with enormous potential and Eldorado Group is the ideal strategic partner. By entering into this agreement we will work closely with Eldorado Group management to develop a better understanting of the Russian market before committing the group financially.'
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