X5 Retail Group NV climbed to its highest level on record after the Russian supermarket chain agreed to buy its smaller rival Kopeyka for 51.5 billion rubles ($1.6 billion).
The stock surged 6.8 percent to $44 by the close of London trading, its strongest close since Bloomberg started tracking the shares in May 2005. Russian regulators have approved the deal, which should be completed by the end of this month, X5 said in a statement today.
“Consolidation of the Russian food retail sector is going at full speed, which confirms its high investment attractiveness,” Renaissance Capital analysts Natasha Zagvozdina and Ulyana Lenvalskaya wrote in an e-mailed report today.
PepsiCo Inc. last week agreed to buy a 66 percent stake in OAO Wimm-Bill-Dann for $3.8 billion to become the country’s biggest food-and-beverage company.
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