Competition authority approves acquisition of Tesco Kipa by Migros
ISTANBULTurkey’s Competition Authority has approved Migros Ticaret A.Ş.’s acquisition of 95.5 percent of the shares of Tesco Kipa, the purchaser said in a statement late on Feb. 9.
In June 2016, Tesco Kipa’s majority shareholder, Tesco Overseas Investments Limited, signed an agreement with Migros to sell a 95.5 percent stake to the latter. Migros then applied to the authority on June 21, 2016, to acquire legal permission for the share transfer.
According to Migros Ticaret A.Ş.’s announcement, the written approval was granted by the Competition Board on Feb. 9.
As a result of the share transfer, Migros will acquire a net sales area of approximately 320,000 square meters in assets, including 48 hypermarkets, 48 supermarkets and 72 express stores from Kipa, which is active mainly in the Marmara, Aegean and Mediterranean regions, according to the statement.
In addition, Migros will acquire 26 Kipa shopping malls in 20 provinces.
Migros declared that the relevant transactions for the share transfer would be completed in a short time and that there were plans to complete the share transfer on March 1, 2017.
Commenting on the acquisition investment, Migros Ticaret A.Ş. 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, a significant brand in the world retail market, the 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.”
In July 2015, Turkey’s Anadolu Holding acquired a 40.25 percent stake in Migros Turkey. Anadolu Group Chairman Tuncay Özilhan became the chain’s chair in March 2016.
Kipa was established in İzmir in 1992. Its majority stakes were acquired by Tesco in 2003 and it kept the stakes until its deal with Migros.
Migros also bought another İzmir-based supermarket chain, Tansaş, in 2005.