Croatian retail chain Tommy, a leader in the Dalmatia region, has expressed interest in purchasing rival Brodokomerc Nova, according to reports.
If the deal were to go through, Tommy would significantly expand its presence in the Rijeka area.
Croatian daily Novi List reported that individual shareholders of Brodokomerc Nova have confirmed receipt of an offer and have already signed contracts to sell their shares.
Tommy's management has declined to comment on the potential takeover, however.
Brodokomerc Nova Estate
According to former Brodokomerc Nova employees who are also shareholders, other parties were interested in acquiring the company's real estate assets and remaining stores.
However, Tommy reportedly offered a more attractive price than previous contenders, including Location Plus, whose offer was estimated at around €7 million.
Unofficially, Tommy is believed to be offering €17,500 per share, which is significantly higher than the €15,800 offered by Location Plus.
Closing The Deal
Several conditions need to be met before the deal is finalised. A sufficient number of shareholders must sign off on the sale, and approval from the Agency for the Protection of Market Competition (AZTN) is required.
Sources suggest that the transaction could be finalised by July 2024.
With 226 stores across nine counties and the capital Zagreb, Tommy is the sixth-largest retail chain in Croatia by market share. It employs 4,300 personnel and generated revenue of €546.4 million in 2022.
The company already has a presence in the Rijeka area, with stores in Rijeka, Opatija, Viškov, Krk, Rab, and Crikvenica-Vinodol.
Brodokomerc Nova saw its revenue in 2023 drop by €2 million compared to 2022, to €18.6 million, while recording a loss of nearly €1.2 million. According to Poslovna.hr, the company has downsized its workforce to 279 employees.
