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X5 acquires franchisee in Rostov
X5 has announced that it has acquired Agrotorg-Rostov, a Pyaterochka franchisee in the Rostov region, for a total of RUB400 million (USD15.8 million). As a result of the transaction, X5 will strengthen its position in southern Russia and will wholley own 15 Pyaterochka stores - a total of 7,000 square metres of selling space. Commenting on the acquisition, X5 Retail Group CEO, Lev Khasis commented: "We have always considered franchisee buyouts as part of X5's expansion strategy. In current market conditions, we have increased our focus on these potential opportunities as a consequence of the liquidity situation many players are facing. The buyout of Agrotorg-Rostov is the first transaction in an inevitable process of Russian retail consolidation, and we are considering other potential buyouts of franchisee businesses or assets."
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