Mercator Looking For Capital Injection

According to online news source SEEbiz, Serbia-based Delta Holding is in negotiations with Slovenia's market leading mass grocery retailer (MGR) Mercator to acquire a 25% equity stake. It is also being reported that Croatia-based Agrokor is sniffing around the buoyant retailer. With an outcome expected by early May 2009, BMI believes securing an equity position would be a fillip for either Delta or Agrokor. BMI is bullish about Mercator's long-term outlook. We estimate Mercator's domestic market share to stand at around 36% and agree with its decision to target a number of underdeveloped regional MGR markets.

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