Russia's X5 Retail Group has completed its acquisition Ufa Grocery, which includes 99 former Polushka stores located in Bashkortostan.
As part of the transaction, X5 has acquired 39 stores in the city of Ufa, as well as four each in Salavat and Neftekamsk, two in Oktyabrsky and one in Sterlitamak, while the remaining stores will be leased under long-term contracts.
Nearly all of the new stores will be integrated into X5's Pyaterochka chain, and will be supplied by the retailer's new distribution centre in Ufa.
The deal, which was first announced in January of this year, was approved by Russia's Federal Antimonopoly Service.
X5 says that this acquisition is fully in line with the group's development strategy, which is focused on organic growth aided by the acquisition of unique assets.
The retailer added a record 2,934 new stores to its network in 2017, and recently opened its 12,500th store.
It reported sales of RUB 1,286.87 billion last year, leaving behind its next closest competitor, Magnit, with sales of RUB 1,143.29 billion, despite the latter having a larger store network of 16,350.
But X5 has no intention of slowing down. As well as the Ufa deal, X5 is acquiring the supermarket business of food retailer O'Key, which includes 32 stores in major cities.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.