X5 Retail Group looks for an international partner

X5’s largest shareholder, Alfa Group, is reportedly considering a merger with a large market player – namely Metro Group or Turkish Migros – in the next two years, Kommersant reported.

New CEO Andrei Gusev, who was previously head of X5’s M&A department, said that the retailer was not interested in an acquisition in its domestic market, a strategy which X5 has followed over the last five years.

With new management in place, X5 is changing its strategy. It plans to grow organically, partly because there is lack of acquisition targets in the Russian retail scene, but also because the retailer has a lot of debt.