April 18 (Bloomberg) -- M.video, the largest electronics retailer in Russia, sought antitrust approval to buy competitor Eldorado from Czech billionaire Petr Kellner’s PPF Group.
A request was made to the Federal Anti-Monopoly Service, or FAS, Dmitry Tarasov, a spokesman for the regulator, said today by phone. PPF spokesman Radek Stavel declined to comment. Kommersant daily reported the planned deal earlier today.
“M.video management is focused on increasing the company’s value for shareholders, while market consolidation is one of the options for growth,” Anton Panteleev, a spokesman for M.video, said by phone, declining to comment on Eldorado.
A combination of M.video and Eldorado would create a business with more than 20 percent of Russia’s electronics retailing market and net sales in excess of $7 billion, said Artur Galimov, an analyst of Sberbank Investment Research.
PPF valued Eldorado at 600 million euros ($782 million), according to a presentation in July last year. M.video is worth about $1.4 billion, based on Moscow trading.
M.video had net sales of 134 billion rubles ($4.3 billion) last year, while Moscow-based Eldorado’s revenue excluding value-added tax was 95 billion rubles, company documents show. M.video has about 300 stores, while Eldorado has more than 400.
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