AUCHAN signs partnership agreement with Furshet

Fresh from unveiling expansion plans for Ukraine, Auchan yesterday disclosed that it has signed a triple partnership agreement with local group Furshet. Two new companies will be created, one to develop Auchan stores under their own banner and the other to develop shopping malls in Ukraine. Auchan will be acquiring a 20% stake in Furshet.

The first company, to develop Auchan branded stores in the country, will be managed by Auchan with the retailer holding 66% of the capital, Furshet 19% and Igor Balenko (the founder of Furshet) the remaining 15%. The second company which will develop shopping malls in Ukraine (to include either an Auchan hypermarket or a Furshet supermarket) will be 50% held by Auchan, 40% by Igor Balenko and 10% by a third financial partner.

The completion of the agreement is subject to regulatory approval of the local authorities. The transaction should be completed by the end of May or early June. Furshet is ranked number three in Ukraine, with 60 odd supermarkets.