Agrokor and EBRD plan to take over Mercator

Croatian Agrokor is secretly planning the takeover of Mercator. It will first answer the Pivara Lasko's call for submission of binding offers for the sale of a 23.3% stake in Mercator, which expires on March 9, Slovenian daily paper Dnevnik writes.

The aim of Agrokor is to conclude negotiations with Pivara Lasko and purchase its stake in Mercator prior to April 30 when a public offer for the takeover of Mercator is planned to be launched.

The newspaper writes that Agrokor wants to acquire at least a 50% stake in Mercator.

The role of financier will be taken by UniCredit Bank with its Zagrebacka Banka, for the purpose of which a lawyer office in Slovenia has already been hired.

Agrokor is also negotiating with the European Bank for Reconstruction and Development (EBRD), the owner of a 8.3% stake in the Croatian company, on co-funding of that acquisition.

The EBRD has also co-financed recent takeover of Droga Kolinska by Croatian Atlantic Group.

According to Dnevnik, final decision on the acquisition of Mercator was made last week in Milan, during the stay of Agrokor owner Ivica Todoric in the headquarters of UniCredit Bank.

The acquisition of Mercator should be financed from a new loan of EUR 0.5 billion, while the difference in capital would be provided by Mr. Todoric and the EBRD.

Agrokor finds Mercator attractive because of synergy effects on the basis of which the major share of that investment can be returned in a very short time.

As a consequence of the acquisition, Mercator would have to lay off between 5 and 10% of employees and their number would be cut by about 2,000 in three years, which would, together with savings in other fields, give an effect of EUR 30 million on annual basis.