Filenews 6 September 2023 - by George Lambiri
Particular activity has been recorded recently in Cyprus, where the Sklavenitis Group is discussing with local chains the possibility of an acquisition, according to market sources in Capital.gr.
Recently, as we are informed by businessmen who operate in Cyprus and have knowledge of the facts, there was contact between Sklavenitis and Papantoniou without however there being an agreement between the two sides and even the Papantoniou side hastened to informally deny in circles the market the existence of any agreement between the two sides.
Discussions on the possible acquisition of individual stores
In the context of the disposal of Sklavenitis to expand in the Cypriot market, apart from acquisition discussions, there were also negotiations for the possible acquisition of individual stores. Of course, if there is an agreement between Sklavenitis and one of the local players and he manages to strengthen his displacement there, there are expected to be significant reversals in the existing environment of organized retail in Cyprus.
The Papantoniou side does not seem willing to sell for prestige reasons, as it is a highly recognizable and recognized company in the Cypriot market based in Paphos. Information indicates that even if there was a case for the sale of Papantoniou, the price in this case would be particularly high for any prospective buyer.
The 18 shops – "dowry" by Marinopoulos
As far as Sklavenitis is concerned, it received 18 stores during the absorption – acquisition of Marinopoulos which was completed in 2017, while it is currently the third player in this market. The stores in its network are located in Nicosia (8), Limassol (5), Paphos (2), Larnaca (2) and Paralimni (1). In total, it employs about 1,500 people, while it is estimated that about 20,000 people enter its stores daily.
As far as the Cypriot market and the supermarket chains that play a leading role are concerned, Lidl Cyprus appears to be the first to be with 22 stores and a turnover of around €350 million, having significantly increased its strength here in recent years – especially in the last five years – constantly expanding with new stores and organic growth. A strong force is also the Cypriot interests of the Papaellinas Group, Alpha Mega, with 17 stores and a turnover also close to €350 million with a share of 25% of the market.
Sklavenitis is the third player in Cyprus. The Greek chain has a market share corresponding to 20% and its turnover is estimated at €200 million.
The fourth player is the cooperative made up of smaller retail outlets, MAS Supermarkets, with 50 stores and a turnover of €150 million. Also, Athienitis, with just two stores, has managed to maintain a 10% share and turnover at levels of €150 million. Papantoniou has 9 stores with a turnover of approximately €150 million. As far as the Metro chain is concerned, it has an annual turnover of €100 million, maintaining 6 stores.
