X5 Retail Group, Russia’s largest supermarket chain, and the country’s largest private oil company LUKoil may set up a joint venture to either build filling stations at X5’s hypermarkets or stores at filling stations, Kommersant business daily said on Friday, quoting a source close to the talks.
X5 spokeswoman Svetlana Vitkovskaya said X5 would provide information only after the deal was closed. LUKoil declined to comment, but a source close to the company said it was in talks with X5.
Executive Director of the Moscow Fuel Association Grigory Sergienko said currently gas station owners pay little attention to their stores, and cooperation with hypermarkets could help them find land plots for regional fuel stations.
Alexei Krivoshapko, director ofthe Prosperity Capital Management fund, said fuel stations near a supermarkets could attract customers which, with proper management, could bring in revenue of around $2-3 million a year.
MOSCOW, March 25 (RIA Novosti)