Dixy chain stores will retain their names after the deal between Mercury Retail Group Limited and Magnit. According to Jan Dunning, CEO of Magnit, the company will keep a separate legal entity for Dixy.

According to him, the retailer also does not plan to lay off employees. Staff stores and head office will be able to remain in their jobs, as they are "one of the strengths of the company.

Magnit believes that following the deal the retailer will strengthen its market positions in Moscow and St. Petersburg - the cities which are strategically important for further expansion of the company in the country.

As a reminder, under the agreement with Mercury Retail Group Limited, Magnit acquires 100% of DIXY Holding Limited. The price of the deal is based on the current value of the business and amounts to 92.4 billion rubles. It is likely to be subject to certain adjustments.

Total selling space of the acquired assets is 854 thousand square meters, of which about 778 thousand square meters is for convenience store format and 76 thousand square meters is for superstore format. The deal is planned to be completed by August 31 this year.

Made in Russia // Made in Russia

Author: Maria Buzanakova