Russian supermarket giant Lenta on Tuesday announced the acquisition of its rival O’Key in a takeover deal where it will assume the company’s debts instead of making a cash payment.
The deal transfers 100% of RBF-Retail, which is the operating company behind O’Key, and its 75 hypermarkets to Lenta.
Industry analysts expect the acquisition to consolidate Lenta’s dominance over the large-format grocery sector, placing 39% of the country’s entire hypermarket industry under its corporate control.
“Our focus is to guarantee a swift, frictionless business consolidation,” Lenta Group CEO Vladimir Sorokin said in a statement. He described the takeover as a milestone in the company’s long-term strategy, which targets an annual corporate revenue of 2.2 trillion rubles ($30.2 billion).
Lenta’s executive team said it expects to manage the added debt smoothly, targeting an operational profit margin of at least 7% through the end of 2026.
