Luxembourg-based global financial fund CVC Capital Partners is reportedly planning a takeover of certain assets of Croatian conglomerate Fortenova.
The potential deal, reported by the Slovenian daily Dnevnik, could include the sale of Slovenia’s largest retail chain Mercator.
This is not CVC's first attempt at acquiring Mercator; it was in the running over a decade ago to buy a 53% stake but lost out to Croatian Agrokor.
The potential sale comes after Fortenova restructured its ownership, removing sanctioned Russian banks Sberbank and VTB Bank and consolidating majority ownership under Croatian businessman Pavao Vujnovac.
If the deal goes through, CVC is expected to acquire Mercator, while Fortenova would retain its Croatian retail chain Konzum and one of its major food processing companies, either Jamnica or meat processing company Pik Vrbovec.
Fortenova's Response
Contrary to reports, Fortenova denied any ongoing plans to sell Mercator or a significant part of the group.
A company spokesperson told Forbes Slovenia that their primary goal during debt refinancing talks is to increase profitability, noting that Mercator's debt has decreased from €857 million in 2017 to €294 million by 2023, and further in 2024.
According to Forbes Slovenia, Fortenova is reportedly in discussions with banks, international financial institutions, and funds like CVC Capital regarding debt refinancing.
The news follows months after Mercator withdrew from the takeover of Slovenian peer Engrotuš.
While Engrotuš suffered a €53.11-million loss in 2022 due to asset impairments, it managed to improve its financial situation in 2023.
This involved reducing debt by selling off their real estate and drugstore businesses. Despite increased revenue, rising costs prevented a full recovery.
Engrotuš Still Up for Sale
According to the Sta news agency, the company is actively looking for a new owner, ideally one with a regional retail presence to create synergies.
In the past, the German retail giant REWE was mentioned as an interested party. Engrotuš is also aiming for profitability through further operational improvements and planned capital increases.
Alfi Fund (AH Invest 1) holds the majority stake (80%), with Tuš Holding owning the remaining 20%.
