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Wednesday, March 14, 2007

Auchan is here

Many people have talked about it and this comes true: Auchan is going to operate in Ukraine. But not alone and with well-known retailer Furshet. They signed strategical agreement about future cooperation.

French retail chain Auchan and the Ukrainian Furshet signed an agreement to set up two new companies and joint development of entertainment t network.

One of the new companies will operate under Auchan brand. 66% of its shares will be owned by Auchan, 19% to Furshet, 15% - Furshet Supervisory board Chairman Igor Balenko personally.
The second company is created for the development the entertainment complexes, and each of it will contain Auchan store or Furshet supermarket.

50% of the company's shares will be owned by Auchan, 40%, Mr. Balenko, 10% for the third financial partner. Furthermore, the agreement provides that Auchan acquire 20% Furshet stake which will remain under the Igor Balenko's management .

Deal closing expects after obtaining permits of Ukraine government, which is scheduled for the end of May or early June.

Total transaction amount not known exactly, but it should be about USD 120-125 mln.