:. Food Industry News

Categories: Mergers and Acquisitions

Russia X5 to Fight Karusel Takeover Conditions

Source: Reuters
24/07/2008

Moscow, July 23 - Russian retail group X5 said on Wednesday it will ask Moscow's Arbitration Court to overturn conditions imposed by the Federal Anti-monopoly Service when it acquired a rival chain.

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The anti-monopoly service approved the takeover of St Petersburg's Karusel chain on condition that X5 revealed details of its relationships with suppliers in the city.

X5 said it initially complied with the requirement, then decided it breached antitrust legislation and opted to return to court.

"The requirements... limit the company's ability to choose counterparties and may unwittingly put the company in an unequal position versus other companies working in the St. Petersburg food retail market," X5 said in a statement.

X5, controlled by Russian billionaire Mikhail Fridman's Alfa Group, has a market share of 35 percent in St. Petersburg, including the local Karusel chain, which X5 acquired for $940 million in May.



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