"Magnit" has asserted control over "Azbuka Tasma" shares.
Score one for Magnit! The retail heavyweight is snatching up a significant stake in LLC "Gorodskoy Supermarket," the brains behind the swanky "Azbuka Vkusa" stores. This revelation comes straight from Magnit's official announcement.
The acquisition, once approved by the Federal Antimonopoly Service (FAS) and all other agreed conditions are met, is all systems go, as per the company.
The "Azbuka Vkusa" network boasts 170+ stores across various formats, including 107 supermarkets, 59 "Azbuka Daily" minimarkets, and 5 hypermarkets "AV Market." The majority of these premium food havens are nestled in Moscow (138) and the Moscow region (23), with the remaining stores snuggled in St. Petersburg. This deal also incorporates five own-brand culinary, bakery, and confectionery production facilities, which pump out over 5,700 products, with a daily output of up to 75 tons.
The acquired assets sprawl across 100,400 sq.m, with approximately 77,900 sq.m dedicated to supermarkets and 11,900 sq.m to minimarkets. The acquisition package also includes three distribution centers and warehouse infrastructure for delivery, amounting to a total area of 47,000 sq.m in Moscow and St. Petersburg.
Magnit has no plans to tamper with Azbuka Vkusa's beloved brand or its key management team. "This acquisition is a mighty push to fortify our position in Moscow and to break into the premium retail segment for the very first time," beamed Magnit's CEO Evgeniy Koryakov.
In February 2025, Severgroup, helmed by Alexei Mordashov, who manages the "Lenta" network, was in the running to buy Azbuka Vkusa. The owners were hoping to pull in around 40 billion rubles from the sale, as reported by "Vedomosti." The terms offered by Magnit seemed more enticing to the Azbuka Vkusa owners, according to a source close to one of the deal's parties, chatting to RBC.
Magnit's network was primarily under the control of its founder, Sergei Galitsky, until 2018. Since 2021, the main shareholder of the retailer has been Marathon Group, founded by Alexander Vinokurov and Sergei Zakharov, former A1 presidents. In 2021, Magnit scooped up the "Dixy" group, in 2023, KazanExpress (now operating as "Magnit Market"), and in 2024, the largest network in the Far East, "Samberi." By the end of 2024, Magnit wielded a 13.2% share of the Russian retail market, trailing behind X5's 15.6%.
The "Azbuka Vkusa" network was birthed in 1997 by the sharp business minds Maxim Koshechenko, Oleg Lytkin, Sergei Vereschagin, and Oleg Trykin. The duo of Vereschagin and Trykin bowed out of the business in 2012. Along the journey, shareholders included former owners of Expobank, Alexander Abramov and Alexander Frolov, as well as Millhouse, founded by Roman Abramovich. The company's main shareholder and investor, following the exit of Abramov and Frolov in early 2024, became AO "Bavero Group" from Perm.
Insights
Background and Recent Developments of the Acquisition
- The deal is expected to finalize following regulatory approval and satisfying agreed terms.
- Magnit aims to boost its premium product offerings and improve its market position in Moscow.
Parties Involved
- Magnit: Russia's second-largest retailer with 31,500 stores nationwide and 13.2% market share.
- LLC Gorodskoy Supermarket (GorSuper): Operator of the luxury "Azbuka Vkusa" chain, founded in 1997.
Deal Structure
- The transaction is estimated to be valued between 35–40 billion rubles ($370–490 million).
- Assets acquired include 171 stores, five culinary factories, three distribution centers, and an online delivery business.
Financial and Operational Impact
- Azbuka Vkusa's sales soared 17.3% YoY to 101.2 billion rubles ($1.06 billion) in 2024, prompting strong growth in net profit.
- Magnit will benefit from the added 100,400 sq. meters of retail space and production facilities churning out 75 tons of artisanal goods daily.
Regulatory and Branding
- Regulatory approval from Russia's Federal Anti-Monopoly Service is required for the deal to proceed.
- The Azbuka Vkusa brand and management will remain unchanged post-acquisition.
Market Context
- The acquisition enhancements Magnit's competition with X5 Group, Russia's largest retailer, in pursuit of market leadership.
- Former suitors for Azbuka Vkusa include Yandex (2021) and Severstal (2019, 2025).
- Upon the approval of Federal Antimonopoly Service (FAS) and meeting all agreed conditions, Magnit's acquisition of LLC "Gorodskoy Supermarket" will proceed, strengthening their position in the premium retail segment and in Moscow.
- The acquisition includes 171 stores under the Azbuka Vkusa network, 5 culinary factories, 3 distribution centers, and an online delivery business, estimated to be valued between 35–40 billion rubles ($370–490 million).
- With this deal, Magnit will gain 100,400 square meters of retail space and production facilities that produce up to 75 tons of artisanal goods daily, bolstering their offering of premium products.
- Despite the acquisition, Magnit has no plans to alter the beloved Azbuka Vkusa brand or its key management team, ensuring continuity for customers.
- The acquisition positions Magnit to further compete with X5 Group, Russia's largest retailer, as they both strive for market leadership in the industry, with Magnit currently holding a 13.2% share of the Russian retail market.
