Russia’s largest hypermarket chain Lenta has penned a multi-billion ruble deal to acquire rival Kesko’s grocery business.
The retailers have agreed terms on a Rbs11.0bn (£143.45m) acquisition, which will see Lenta take control of 10 hypermarkets and one supermarket operating under the K-Ruoka fascia.
All of the stores are based in the Saint Petersburg and the Leningradsky region and most are new shops, which opened between 2012 and 2015.
The deal will provide Lenta with 457,466 sq ft of additional retail space in Russia.
Lenta, which currently operates 198 stores in 72 cities across Russia, said the acquisition was in line with its store ownership strategy. A total of 432,700 sq ft of the new space will be owned, while less than 25,000 sq ft is rented.
As part of the deal, Lenta has also purchased three land plots in Moscow and the Leningradsky area.
Following completion of the deal, all K-Ruoka stores will be converted to operate under the Lenta fascia.
Lenta boss Jan Dunning said: “We are very pleased to have reached an agreement with Kesko to acquire their business in Russia. While Lenta remains primarily focused on its successful organic expansion, we welcome opportunities to augment this by acquiring high quality assets such as the Kesko stores.”
Dunning added that the stores have “excellent urban strategic locations” that are “complementary” to its existing store network.
“Completion of the acquisition will significantly strengthen Lenta’s network in Saint Petersburg, giving many more customers the opportunity to shop at a Lenta store close to their homes,” Dunning said.
The transaction is expected to be completed on November 30, subject to approval by the Russian competition authority.