RUSSIA: Magnit explores buyout of vegetable producer | Progresiv

Russian retailer Magnit plans to strengthen its production arm by acquiring a large-scale farming business in the Lipetsk region. According to business portal RBK, the Krasnodar-based company submitted a request to the Russian Federal Antimonopoly Service (FAS) concerning the purchase of vegetable producing company OOO Moskva na Donu, which grows potatoes and carrots on 700 hectares of farmland.

Already in the past Magnit announced plans to extend its agricultural production mainstay as part of its long-term strategy. The company committed to invest around 700 million euros by 2022 into its farming business. To date Magnit operates its Zelenaya Liniya greenhouse complex on 80 hectares and also acquired the confectionery Konditer Kubani, and the Kuban bakery plant, both located in the retailer’s home city, Krasnodar. (www.lebensmittelzeitung.net)