Russia's largest grocery group, X5 Retail, has signed a deal with A5 pharmacy chain, one of Russia’s leading pharmacy retailers. The partnership agreement grants A5 preemptive rights to rent space adjacent to X5’s food retail stores at commercial market rates, at properties owned or leased by X5. 

In addition X5 has the option to purchase the A5 business in two years if it meets certain criteria for performance, market fundamentals and prospects.

Lev Khasis, X5 Retail Group CEO, said, “This partnership is an opportunity to enhance our customer appeal and convenience by locating pharmacies adjacent to X5 food retail stores.  We have always seen the potential for synergies between pharmacy and food retail."

The agreement does not call for any cash settlement, which is important in the current market environment, said Khasis. 

Roman Buzdalin, chairman of A5 Pharmacy Chain, added, “We see this agreement as a major step forward in our strategy to build A5’s leadership in the Russian pharmacy market.”

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