Russian retail group X5 has agreed to buy the Prisma retail chain in St. Petersburg from Finnish firm SOK Retail for an undisclosed sum.
X5, Russia's largest food retail chain, said in a statement it would buy 15 stores – all in St. Petersburg – through the deal. The Russian Federal Antimonopoly Service provided the relevant approval on 15 June, it added.
'The stores will resume operations by mid-July, following the completion of required legal procedures and basic rebranding, as well as the filling of store shelves with X5's stock,' the company said.
Western firms have been offloading their Russian assets at cut prices following the imposition of Western sanctions in response to Moscow sending tens of thousands of troops into Ukraine in late February.
Most of the stores will be rebranded to operate under X5's Perekrestok supermarket chain.
'The key conditions of the deal included X5's commitment to retain Prisma operational staff and fulfil the company's obligations to its key partners, including its lessors,' the group added.
Russia's parliament last week passed a bill seeking to soften deal-making requirements for retailers as sanctions hit the Russian market and some foreign chains leave.
The new bill removes some market share restrictions for retailers when buying or renting retail chains whose foreign owners have left the Russian market, from June 15 until December 31, 2022.
Read More: X5's Chizhik Discount Chain Unveils First Distribution Centre
News by Reuters, edited by by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.