Germany's Tengelmann is in talks with several retailers to sell Plus network in Romania, the second biggest player on the segment of food discounters, with 277m-euro sales in 2008 and 94 operational stores at present.
The network's sale would make the biggest deal in food retail, after Profi broke the record in 2009, selling for 66m euros on 140m-euro turnover last year. Taking into account Plus in 2008 sold twice as much as its rival Profi, Pludi Market company that operates the network may be valued at over 100m euros.
"We confirm Tengelmann's being in talks with several retailers for the sale of Plus stores of Romania," Sieglinde Schuchardt, Tengelmann spokesperson, told ZF.
The deal may be concluded in the following months with LIDL, the retailer planning to enter the market this year, or with Delhaize, operator of Mega Image supermarkets that in 2009 also bid for Profi stores, according to market sources.
Delhaize has recently opened its first two discounter stores under Red Market brand and announced plans to rapidly develop its new network in the following years.
"We're not ruling out possible store acquisitions to develop Red Market," stated Xavier Piersvaux, general manager of Mega Image Romania, in December, at the moment the first Red Market stores was opened domestically.
Plus network entered the Romanian market in 2005 and has quickly expanded so far, currently reaching 94 stores with total sales ZF puts at over 350-400m euros for 2009. In the previous year, the operator reported 277m-euro turnover, with 71 operational stores. The company turned profitable in 2008.
In 2007-2008, Tengelmann, with annual sales of around 20bn euros, sold most of its Plus discount stores of Western Europe and also considered an exit from the sector by giving up all stores.
The retailer negotiated the sale of Plus stores of Romania
