Croatia: Agrokor eyes Mercator as EU entry approaches
Zagreb-based Agrokor, which owns Croatian retailer Konzum, abandoned its bid in February after delays and opposition from Slovenian officials. Two banks involved in the process, UniCredit SpA (UCG) and Raiffeisen Bank International AG (RBI), withdrew their support for the takeover.
Agrokor may still look to Mercator to expand its Balkan business as the retail industry consolidates following the takeover by Delhaize Group SA (DELB) of Serbia’s Delta Maxi last year, analysts said. Croatia is set to join the EU in 2013, giving the 27-nation bloc deeper reach in the Balkan region after Slovenia’s entry in 2004.
“I believe Agrokor is still very interested in Mercator, especially now that Croatia’s EU membership is approaching as it would have a dominant position at home, in Slovenia and a big market chunk in Serbia,” said Radivoj Pregelj, an Abanka Vipa analyst. “Some banks may have pulled out because Agrokor earnings are worsening, but I believe it’s still in the game.”
Agrokor offered 221 Euro per Mercator (MELR) share when it made a non-binding bid last year, valuing the retailer at 832 million Euro ($1.1 billion).
Banking Concerns
A majority of Mercator was offered for sale by Slovenian investors, including banks Nova Ljubljanska Banka d.d. and Nova Kreditna Banka Maribor d.d. at a time when concern rose that Slovenia may be forced to ask for international assistance to prop up its financial industry.
Source: bloomberg.com
