Montenegro’s Agency for the Protection of Competition (AZK) has approved the acquisition of local supermarket chain Supermarketi Franca by Mercator-CG.
Mercator-CG is the local unit of Slovenian retailer Mercator, which is in turned owned by Fortenova Group (formerly Agrokor).
In approving the deal, the market regulator imposed a series of measures, conditions and obligations that Mercator-CG must fulfill so that the acquisition does not prevent, limit or distort market competition.
The buyer has 15 days to submit the sales contract to the competition regulator, from the date of signing.
Mercator-CG is also obliged to notify AZK, within a period of five years, of any purchase, lease or opening of new outlets in the cities of Kolašin and Plužine.
In addition, the retailer must notify, during two years and on a quarterly basis, of the average number of stores in the two cities for certain food categories, namely fresh products, packaged goods and non-food.
Franca Marketi Acquisition
Last year, Mercator-CG submitted a request to AZK for the approval of the purchase of Supermarketi Franca, a supermarket chain owned majorly by local entrepreneur Hilmija Franca and members of his family.
Both parties have not divulged financial details of the deal.
There are 69 Supermarketi Franca supermarkets spread out across all municipalities of Montenegro, including 13 in the capital Podgorica, eight in Budva, and seven in Bijelo Polje.
Founded in 1990, the company was originally part of the meat industry Meso Promet that focuses on local meat production and processing.
For its part, Mercator-CG is one of the leading retailers in Montenegro where it is present since 2007 with 129 stores in 19 municipalities across the country.
© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
