According to several press reports, Russia’s largest drugstore chain looks to be gearing up to merge with local rival, A5 Pharmacy Chain.
Shares in the drugstore chain surged by more than 13% in one day amid rumours that it is about to merge with A5 Pharmacy Chain. If the merger comes to fruition, the deal is likely to be funded by $300m worth of new shares.
Become significant player in the Russian drugstore market
If the merger goes ahead, the new company would control 25% of Moscow’s pharmacy market and would see the retailers combine their 2,400 stores, generating sales of around £915m. The merger offers increased economies of scale and enables the company to negotiate improved purchasing and payment terms with suppliers.
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