Croatian food-to-retail concern Agrokor has so far divested 30 of the 96 stores (operated by retail unit Konzum) it has been ordered to sell by Croatia's Agency for Protection of Competition (AZTN).
The deal is part of the conditional clearance for the merger with Slovenia's Mercator granted in April 2014.
According to the Croatian anti-trust regulator, by mid-January Agrokor had sold 19 stores and leased another 11 for a period five years (renewable for another five years). Disinvestment talks are in progress or close to be concluded for most of the remaining stores.
In Serbia, Agrokor has decreased its net sales area in two retail stores in Belgrade over a total of 1,000 m2, while the deadline for the fulfilment of other obligations is considerably longer.
In order to authorize the merger with Mercator, Serbia's Commission for Protection of Competition ordered ordered Agrokor to sell 21 stores in 15 cities.
Besides interest by local retailers, a foreign retail chain from the region is also interested in acquiring a large number of stores currently controlled by Agrokor.
Meanwhile, Agrokor boss Ivica Todori? told Slovenian daily Finance that Mercator is a stronger company today, arguing that the acquisition had produced a system that could get penetrate European and global markets. He would not disclose data on the synergies achieved, but he did say the figures were substantial and that they would boost operating results.
Todori? says he is not afraid of competition from Lidl and Hofer (Aldi), arguing that Mercator and Konzum can have a competitive edge over both discount retailers. "We have the advantage of understanding the local environment better," he said, adding that the two grocers did better than discount rivals in the local markets.
Todori? assured that "not a single" Slovenian supplier had been removed from store shelves, while instead several had acquired more shelf space in the region, including beverage company Pivovarna Laško. He also rejected the allegation that the suppliers wanting to sell in the region had to pay a 10% margin to Agrokor, but admitted that the company would like for suppliers to tie-up and to be more competitive.
© 2015 European Supermarket Magazine – your source for the latest retail news. Story by Branislav Pekic
