Russian financial services provider VTB Group has signed an agreement with Magnit owner Sergei Galitsky to acquire his 29.1% stake in the company for approximately RUR138bn ($2.4bn).
Founded by Galitsky in 1994, Magnit is said to be one of the leading food retailers in the country.
The completion of the deal is subject to securing approval from the Federal Antimonopoly Service of the Russian Federation.
Magnit is said to have played a key role in transforming the Russian product retail industry from traditional retail to a modern network sales format.
During the past nine years, VTB Group is reported to have made 22 major large-scale investments in Russia worth more than $15bn.
VTB bank management Board chairman and president Andrey Kostin said: “Currently the global retail market is undergoing a period of significant transformation caused by rising consumer demands and preferences, mutual penetration of online and offline sales channels and the increased role of high technologies.
“In Russia, we see vast potential for this segment’s perspectives, and using VTB Group’s expertise and financial resources, we plan to take Magnit to a new level of its development.”
With its experience in the retail sector, VTB Group intends to focus on Magnit’s future development.