Media Markt leaving the Russian market began with the sale of goods

FAS will approve the sale of the Russian unit of the German network to the group "Safmar" in the near future.
04.08.2018
Vedomosti
Origin source
The German network of home appliances and electronics Media Markt announced the liquidation of the assortment before leaving the Russian market. "We are eliminating the entire assortment in our stores - tens of thousands of items: from large household appliances and smartphones to computer equipment and equipment for gamers," the retailer said in a statement.

According to the network, it will sell the goods with discounts up to 70% until the end of August. On issues of guarantee obligations since September MediaMarkt redirects customers to specialists in M.Video stores.

In early summer, the owner of the retailer - the German Ceconomy agreed to sell the Russian Media Markt business to the Safmar group of Mikhail Gutseriev, who already owns M.video and Eldorado. The German company will receive 15% in the group "M. Video". Closing of the transaction is planned for the III quarter of 2018.

Russian Media Markt is valued for the deal at about $ 170 million, previously said representatives of M. Video. The total amount of the transaction will be $ 470 million, the chairman of the board of directors M.Video Said Gutseriev specified.

After the transaction, the brand Media Markt will leave Russia: the stores will be renamed "M.video" or "Eldorado". According to M.video, the rebranding will be completed in the second quarter of 2019.

 On July 31, Andrei Tsarikovsky, deputy head of the Federal Antimonopoly Service of Russia (FAS), told Interfax that the planned deal "will not lead to the domination of M.video on the market, as Media Markt did not occupy the dominant part of the market." At the same time, M.video is Russia's largest retailer in the home appliances and electronics market. The total share of M.video and Eldorado in the Russian consumer electronics market is about 29.2% at the end of 2017, while Media Markt has 3.3%.

As specified by Tsarikovsky TASS, the Federal Antimonopoly Service can approve the deal in the coming days.

In the evening on Friday, after the announcement of a sale, the Media Markt site is working intermittently. "Due to the global sale and the increase in the number of visits to the site, there may be disruptions in the operation of the site," the retailer said on its official website in "In Contact."

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