Two shareholders in Mercator, one of southeast Europe’s biggest food retailers, have set a deadline for bids as they prepare to sell their 48.3 per cent stake.
Drinks producer Pivovarna Lako and investment firm Infond Holding have set February 2 as the cut-off point for non-binding bids.
Mercator has about 1,000 grocery stores in the region. It is the biggest retailer in Slovenia and second largest in Serbia and Croatia. It is strengthening its position in Bosnia and Herzegovina and plans to open shops in Montenegro and Bulgaria.
Planet Retail analyst Milos Ryba said: “Mercator is the leading retailer in the ex-Yugoslavian territories. It is the clear leader in Slovenia, with 36 per cent market share in the grocery sector.
“This region has not been touched by foreign retailers, which have been concentrating on the likes of Poland and Hungary, so Mercator has had no competition. It has done well on its marketing, pricing, private-label products and loyalty scheme.”
Ryba added: “It would be an attractive proposition for an investor in the long term and retailers that want to operate small formats and convenience stores would be interested.”
Two of Mercator’s competitors, Agrokor in Croatia and Delta Group in Serbia, are likely to be interested in snapping up the stake, according to Ryba. Private equity firms and grocers that do not already have a big market share in Slovenia are also likely to be interested.
There has been speculation over the past two months about a possible sale of the Mercator stake. The retailer said the decision would have a “considerable impact” on the company.
The news follows Austria’s Hypo Alpe Adria banking group’s decision to sell its 10.1 per cent stake in Mercator in September. A sale has yet to take place.
Net profit at Mercator rose 1 per cent to Ä36.4 million (£31.7 million) in the first nine months of the calendar year. Group net sales jumped 13 per cent to Ä2 billion (£1.7 billion).
Mercator has about 1,000 grocery stores in the region. It is the biggest retailer in Slovenia and second largest in Serbia and Croatia. It is strengthening its position in Bosnia and Herzegovina and plans to open shops in Montenegro and Bulgaria.
Planet Retail analyst Milos Ryba said: “Mercator is the leading retailer in the ex-Yugoslavian territories. It is the clear leader in Slovenia, with 36 per cent market share in the grocery sector.
“This region has not been touched by foreign retailers, which have been concentrating on the likes of Poland and Hungary, so Mercator has had no competition. It has done well on its marketing, pricing, private-label products and loyalty scheme.”
Ryba added: “It would be an attractive proposition for an investor in the long term and retailers that want to operate small formats and convenience stores would be interested.”
Two of Mercator’s competitors, Agrokor in Croatia and Delta Group in Serbia, are likely to be interested in snapping up the stake, according to Ryba. Private equity firms and grocers that do not already have a big market share in Slovenia are also likely to be interested.
There has been speculation over the past two months about a possible sale of the Mercator stake. The retailer said the decision would have a “considerable impact” on the company.
The news follows Austria’s Hypo Alpe Adria banking group’s decision to sell its 10.1 per cent stake in Mercator in September. A sale has yet to take place.
Net profit at Mercator rose 1 per cent to Ä36.4 million (£31.7 million) in the first nine months of the calendar year. Group net sales jumped 13 per cent to Ä2 billion (£1.7 billion).
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