Italy's second largest supermarket group, Conad, has acquired the Italian business of French peer Auchan to become the bigger grocer in the country.
Financial details were not disclosed, but sources place the deal at close to €1 bn.
According to Conad, the firm has purchased a 'sginficant part' of Auchan's 1,600 stores in Italy, including hypermarkets, supermarkets, local shops with the Auchan and Simply brands, excluding the supermarkets managed by Auchan Retail in Sicily and the Lillapois drugstores.
'We are pleased to have acquired and brought under Italian management a supermarket network of great value, which is going through a difficult period but which has great potential and is complementary to that of Conad,' said Francesco Pugliese, managing director of Conad. 'Today a great Italian company is born, which will bring value to Italian companies and consumers.'
The deal sees the second and fifth largest supermarket chains in the country come together under one banner. The acquisition will only be finalised following the approval of the Italian antitrust authorities.
The acquisition will only be finalised following the approval of the Italian Antitrust Authority.
According to the agreement, the shopping centres achored by Auchan Retail Italia stores will continue to be managed for the time being by Ceetrus, Auchan's property management arm.
The acquisition will be conducted by Conad with the support of the WRM Group, a London-based asset management company specialising in commercial real estate.
Conad was assisted by PwC TLS lawyers and accountants in all legal and fiscal matters, and by PwC Advisory for the financial aspects.
