COMPETITION BOARD APPROVED THE TRANSACTION OF TRANSFERRING KİPA TO MİGROS
10 February 2017
The Competition Board approved the transaction signed in June for the transfer of 95.5% of Kipa’s shares from Tesco Overseas Investments Limited to Migros Ticaret A.Ş. According to the announcement of Migros Ticaret A.Ş., the written approval dated on February 9, 2017 was granted by the Competition Board upon its application on 21 June 2016 for legal permissions concerning the share transfer.
The decision of the Competition Board started the share transfer process for 95.5% of the shares of Tesco Overseas Investments Limited in Tesco Kipa to Migros, the foundations of which were laid in 1954 and which has been a pioneer in the Turkish food retail market for 62 years. As a result of the share transfer, Migros will acquire a net sales area of approx. 320,000 m2 including 48 Hypermarkets, 48 Supermarkets, 72 Express Stores from Kipa which is active mainly in the Marmara, Aegean and Mediterranean regions. In addition, Migros will acquire 26 Kipa shopping malls in 20 provinces. Migros declared that the relevant transactions for the share transfer will be completed in a short time and that there are plans to complete the share transfer on March 1, 2017. According to company’s Material Event Disclosure made on Public Disclosure Platform , it is stated that “The Competition Board permitted the transaction with its resolution 17-06/56-22 dated February 9, 2017 under the opinion that the Regulator’s concerns around horizontal density in 10 districts and strengthening the dominant position in the beer market of Anadolu Efes Biracılık ve Malt Sanayi A.Ş., one of the subsidiaries of Anadolu Endüstri Holding A.Ş., have been eliminated with the commitment package presented with the letter of Migros dated 25.01.2017 and numbered 580”.
Commenting on the acquisition investment, Migros Ticaret A.Ş.’s CEO Özgür Tort said, “Migros Ticaret A.Ş. created a unique know-how in the retail sector with its experience of over half a century. This experience continues to grow in different regions, constantly updates itself with numerous suppliers and customer-focused employees, and is a pioneer in many areas. This investment proves our confidence in the future of retail. The know-how contributed to Kipa by Tesco, the significant brand in the world retail market, successful Kipa team and Kipa retail services will be enhanced further after the acquisition by Migros. We will raise the bar even higher and strengthen Migros’ leadership even more.”