Germany-based electronics retailer MediaMarktSaturn Retail Group has agreed to acquire a 15% strategic stake in Russian consumer electronic (CE) retail chain PJSC M.video from Safmar Group for €258m.
As part of the deal, MediaMarktSaturn will divest its entire Russian operations along with MediaMarkt Russia to Safmar Group.
The deal will stop MediaMarkt Russia’s operating losses and expands its presence in the consumer electronics market.
MediaMarktSaturn CEO Pieter Haas said: “This transaction means we will remain permanently active on the large, fast-growing Russian market and have found a sustainable solution for our activities in Russia.
“We will be a significant shareholder in Russia’s number one player on the consumer electronics market.
“M.video is to become the third member of our European Retail Alliance. The Alliance will then represent the largest CE volume worldwide with close to €34 billion of combined company sales.”
According to MediaMarktSaturn, the purchase price is subject to additional customary adjustments that may increase or decrease the value.
The purchase price may also be reduced by up to €86m based on the development of certain EBITDA targets of M.video in this and next year.
The transaction, which is scheduled to close by this September, is still subject to customary conditions such as regulatory clearance.
M.video is also planning to join the European Retail Alliance, which will make it the third member following MediaMarktSaturn and Fnac Darty.
PJSC M.video currently operates consumer electronic retail brands such as M.Video, Eldorado and Goods marketplace. The group has more than 800 stores in 200 cities across the Russian Federation.