All news

Lenta receives approval from Russia’s Antimonopoly Service for purchasing retailer Billa

161 acquired supermarkets, logistics infrastructure, and Billa Russia employees to be integrated into the Lenta network

MOSCOW, July 6. /TASS/. The Russian Federal Antimonopoly Service (FAS) approved the purchase of Billa retail chain by retailer Lenta, FAS Russia press service told TASS.

"The Antimonopoly Authority granted the request of Lenta retail chain to acquire Billa distribution network. After the merger, their share in the food market will not exceed the threshold allowed by the law on trade. The united retail chain will not occupy a dominant position in the commodity markets and will not abuse this position, including setting high monopoly prices," the FAS said.

The department is closely following the merger process. For all incoming requests, FAS Russia is analyzing transactions in order to prevent restricting competition in the market, the service stressed.

It was reported back in May that Lenta would acquire Billa for 215 mln euro. "Lenta LLC, an indirect subsidiary of Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces an agreement to acquire the supermarkets business of Billa Russia GmbH ("Billa Russia") for EUR 215 million in cash. The acquisition significantly accelerates Lenta's expansion in Moscow, adding prime retail locations that represent mature retail properties with a high sales density. As a result of the transaction, Lenta will have a total food retail market share of approximately 3% in Moscow and the Moscow region," Lenta said in a statement.

Lenta planned to integrate 161 acquired supermarkets, logistics infrastructure, and Billa Russia employees into the Lenta network.

"The acquisition of Billa Russia’s supermarkets gives us access to mature stores with established customer traffic, including in central Moscow neighborhoods, and instantly doubles Lenta’s footprint in the supermarket segment in terms of the number of stores overall. Billa’s locations also enable Lenta to further expand its online express delivery offering across all of Moscow, supporting our ambitious plans to significantly grow the online business in the coming years," Lenta CEO Vladimir Sorokin said.

The deal is expected to close in the summer of 2021.

As of March 31, 2021, Lenta managed 254 hypermarkets and 140 supermarkets.