Saudi-based Savola Group has struck a deal worth SR440 million (€82.5m) to acquire all the Géant supermarkets belonging to Fawaz Alhokair Group.
“We are taking all the Geant stores in the kingdom, they are 11,” Savola’s chief executive Sami Baroum told Reuters.
The deal will enable Savola’s retail arm Azizia Panda to raise its share of the Saudi retail market from 7 per cent to 8 per cent, and will reportedly increase the company’s turnover by 13 per cent.
This is the second time since 2008 that Savola has absorbed one of its competitors in the retail market, after its purchase of Giant Stores from private Saudi conglomerate Al-Muhaidib Group in February 2008.
According to Savola, its aim is for Azizia Panda to control around 10 per cent of the SR96bn (€18bn) Saudi retail market, and to have 120 stores by the end of 2010, twice what it had in 2008.
“Organic growth will be the way forward for Azizia to get to 10 per cent market share,” said Mr Baroum. “I don't see at this point prospects for new acquisitions.”
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