Russia's Mercury takes Dixy

Russia's major diversified holding Mercury Group will acquire 100% of Dixy Holding Limited. Dixy Group is a leading Russian food and grocery retailer that manages 372-store chain. The deal is expected to close before February 1, 2008.

Russia's retail food market has been showing double-digit growth in the recent years on the back of a consumer boom fuelled by the robust economic expansion of the oil exporting country. The owner of discounter Dixy Group agreed to sell his firm after months of speculation. The indebted firm was seeking a strategic deal as the fragmented sector consolidates.

In the first nine months of 2007, Dixy's revenues rose by 42% year-on-year to €614.2 million, while net profit almost tripled to €3.96 million, although the company said net-income growth was limited by the debt pressure.

"We believe that the new owner will provide a massive boost to Dixy's development," said analysts from Troika Dialog.