Victory has acquired 8 stores in Mega's discount You chain and Johananoff has bought 9.
After talks that extended throughout the night, Victory Supermarket Chain Ltd/ (TASE: VCTR) signed a deal to acquire eight You discount supermarkets from Israel's financially troubled Mega supermarket chain for NIS 35 million. Mega also reportedly signed a deal to sell 9 stores to the Johananoff supermarket chain for NIS 60 million.
Victory is buying the stores in Rishon Lezion East, Rosh Ha'ayin, Ashkelon, Beersheva, Dimona, Ofakim, Bet Shean, and Ramat Yeshai. The agreement is subject to approval by the Israel Antitrust Authority.
The talks began in the early afternoon in the offices of the Lipa Meir & Co. Law Firm with each side of the negotiations sitting in separate rooms with their lawyers. Mega was represented by Adv. Amir Bartov and Mega was represented by Adv. Asher Afriat.
Rami Levy was also a party to the negotiations and Victory CEO Eyal Ravid and Johananoff CEO Eitan Johananoff had feared that Levy would push up the price. But after Levy dropped out of the talks at 11 pm, agreements were concluded within two hours.
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