Russian retailer Magnit finalises Dixy buy for 87.6 billion roubles

Industry:    2021-07-23

Russian retailer Magnit on Thursday said it had finalised its purchase of rival Dixy for 87.6 billion roubles ($1.2 billion), lower than the original price after the competition regulator last week ruled that 142 stores be left out of the deal.

Magnit agreed in May to pay 92.4 billion roubles to add Dixy’s 2,651 stores and five distribution centres in Moscow, St Petersburg and other regions to its portfolio, and has said it still has room to make other acquisitions.

On Thursday, Magnit said the two parties had agreed to include 2,477 stores in the deal, 174 fewer than previously communicated as some stores had closed since the agreement was signed and Russia’s Federal Antimonopoly Service had excluded some others.

“Further adjustments to the purchase price will depend on the net debt and working capital as per completion accounts to be agreed by the parties,” Magnit said in a statement.

Magnit CEO Jan Dunning said the purchase would not affect the company’s expansion plans and that he expected the integration process to be completed in the second half of 2022 or early 2023.

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