The Channel logo

News

By | Tim Richardson 15th April 2005 12:26

Dixons looks to Russian Eldorado for growth

'Imaginary land of wealth' apparently

Dixons is considering expanding its electrical retailing empire to Russia and the Ukraine following the inking of a long-term co-operation deal with the Eldorado Group.

Dixons has until 2011 to acquire the Russian consumer electronics retailing group for £1bn. Under the agreement Dixons does not have to acquire Eldorado. Instead, it has the right to buy the group.

To secure the acquisition, Dixons would need to snap up an initial 10 per cent of Eldorado's equity by 2008. The price for 100 per cent of the equity of Eldorado Group is fixed at $1.9bn (£1bn).

Said Dixons chief exec John Clare: "Russia is a market with enormous potential and Eldorado Group is the ideal strategic partner. By entering into this agreement we will work closely with Eldorado Group management to develop a better understanding of the Russian market before committing the group financially."

With 610 stores, Eldorado Group is the biggest retailer in Russia with an estimated market share of around 22 per cent. Last year it notched up sales of $2.5bn (£1.3bn).

By midday shares in Dixons were up 1p (0.67 per cent) to 150p. ®

Related stories

Dixons mulls The Link sell-off
Festive sales boost Dixons
Dixons ditches the video recorder

alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers