"Magnet Acquires Azbuka Vkus for 29 Billion Rubles"

Magnit Acquires Premium Supermarket Chain Azbuka Vkusa for 29.6 Billion Rubles

Russian retail giant Magnit has made a significant move in the market with the acquisition of premium-class supermarket chain Azbuka Vkusa. The deal, worth 29.6 billion rubles, was announced on August 29 and marks a strategic expansion for Magnit in the premium-class supermarket segment.

The acquisition includes 170 stores of the network, kitchens in Moscow and St. Petersburg, and distribution centers. This adds to Magnit's existing portfolio of supermarkets, further strengthening its position in the retail sector.

Azbuka Vkusa, founded in 1992 by Maxim Koscheenko and Evgeny Grebenshchikov, has built a reputation for high-quality products and customer service. The company's acquisition was initially estimated at 35-40 billion rubles, but the final value was lower, reflecting market conditions.

Interestingly, tech giant Yandex had previously expressed plans to acquire Azbuka Vkusa, but the deal never materialized (June 2021). Magnit's acquisition of the premium supermarket chain is a significant move in the Russian retail sector.

The deal was reported by Vedomosti and follows Magnit's announcement in 2021 that it plans to divest large-format objects to develop small stores. This strategy aims to adapt to changing consumer preferences and the growing demand for convenience and accessibility in retail.

In 2024, Magnit reported a net profit of 50 billion rubles, demonstrating the company's financial strength and its ability to undertake large-scale acquisitions. With the addition of Azbuka Vkusa, Magnit is poised to continue its growth and expansion in the Russian retail market.