Eurocash has secured approval from Poland’s Office of Competition and Consumer Protection (UOKiK) to acquire Mila supermarkets, a chain of 187 supermarkets situated primarily in central Poland.
UOKiK’s positive decision brings Eurocash Group closer to finalizing the transaction, under which the company will buy100% of shares in the Cypriot company Domelius Limited, which controls Mila.
Once the transaction is completed, Domelius will be dissolved and Mila stores will be directly owned by Eurocash.
Eurocash is a company based in Komorniki near Poznan and listed on the Warsaw Stock Exchange.
With this transaction, Eurocash expects to strengthen its market position of thousands of independent entrepreneurs running retail stores in Poland. The innovative solutions and experience of Mila chain will now be part of Eurocash Group clients.
Eurocash Group’s management board member and chief financial officer Jacek Owczarek said: “Improving the competitiveness of retail stores operated by independent entrepreneurs in Poland remains our key objective. A large part of our clients are already doing quite well against the competition.
“But in order for them to compete in the future against discounters, we want to deliver the tools, scale and solutions allowing them to compete much more fiercely. Having our own locations, we can improve effectiveness in the area of logistics, marketing or the negotiation of purchasing terms for our clients that are more in line with those enjoyed by the discounters today.”
Mila stores has generated about PLN1.48bn ($404m) in total sales in last year. With investment from Eurocash, Mila will gain a strong strategic partner with know-how and resources needed for further development.
Mila management board president Artur Góralczyk said: “Following the transaction, the Mila chain will benefit from the support of a stable and experienced partner with which we will be able to develop our stores. We are, and we will remain, close to our clients, who appreciate our pleasant service and high quality, especially in fresh products.
“The transaction means that our clients can be certain that they will continue benefitting from attractive promotions while shopping in a pleasant setting. Exchanging experiences with Eurocash Group will have a positive impact on the competitiveness of every store in the Group.
Source: retail-business-review.com