Leroy Merlin buys the bauMax network in Romania

The French retailer Leroy Merlin reached an agreement with the Austrian network bauMax for the purchase of the 15 bauMax units in Romania, following a share transfer deal.

2014-07-09 14:14:07

The transaction is pending the green line from Romanian competition regulators and comes as the predicted stage in the restructuring process developed by the Austrian retailer until 2016. The retailer announced they would concentrate on five markets such as Austria, Czech Republic, Slovakia, Hungary and Slovenia and analyze the operations from Turkey, Romania, Bulgaria and Croatia.

Following the transaction, Leroy Merlin, operated by Adeo group (also operating formats such as KoziKaza, Brico Center, Weldom, Bricoman and Bricomart) will grow the network in Romania to 16 units, including the facility opened within Colloseum retail park launched in Chitila in 2010.

Baumax ended 2012 at a net loss worth 126 million Euro and the bad result was mostly due to Romanian (which registered a total 26 million Euro loss) and Turkish (EUR 14 million loss) branches, but all Eastern European countries, except Slovakia, also worsened the company fiscal balance.

In Romania, the entire DiY segment crossed a turmoil interval, defined by pulling back and consolidations. Hence, the UK group Kingfisher took over the Bricostore network from the French group Besson and rebranded in Brico depot, with the lauch performed recently in Bucharest. Also, the German retailer Obi take is mulling the possibility to leave the Romanian market within this year, after it registered losses each year since 2008. Obi opened the first store in 2008 at Oradea and, so far, opened also units in Bucharest, Arad, Ploiesti and Sibiu.

In February this year, also German network Praktiker sold the 27 DiY units in Romania to Search Chemicals company controlled by the Turkish businessman Omer Susli.