Several reports suggest that Agora-the first retail chain super shop in Bangladesh and Meena Bazar- another top player in the same industry are in a conversation regarding the possible acquisition of Agora.
The conversations, which are partially through, are relied upon to be finished by the center of this current year. Individuals acquainted with the issue were not keen on sharing the figures being discussed.
Several reports also implied that the owners of Agora started the talk with Meena Bazar’s owner Gemcon Group two or three months back for what will be the first-ever take over attempt in this chain grocery sector.
Shaheen Khan, CEO of Gemcon Food and Agricultural Products, Meena Bazar’s administrator, recognized the advancement.
One of the directors of Agora has told bdnews24 that-
“The discussions are “not for profits or loss, but the wish of the authorities. Our foreign partners have also agreed [to the sale] referring to Swedish firm Brummer and Partners, which had partnered with Rahimafrooz to run Agora.”
The quantity of Agora’s outlets in Dhaka, Chattogram, and Sylhet remains at 17 now while Meena Bazar has 18. If the acquisition takes a turn to reality, Meena Bazar will become the second-largest player.
Meena Bazar will be the second with 35 outlets in total in Bangladesh after the market leader Shwapno, a concern of ACI Logistics. Shwapno currently has over 60 outlets in all over Bangladesh.
Currently, Bangladesh has around 150+ retail grocery and convenience stores with a 19% yearly turnover [year-on-year to BDT 2300 in 2019] in the growing chain retail grocery sector.
The sector has been enrolling 24 percent compound yearly development.
However, the sector represents 2 percent of wholesale and retail exchange as 5 percent VAT on deals gets numerous clients far from superstores and is keeping down the sector from growing at a lively pace, as per administrators.
Although there is no clear understanding yet, we can not be cent percent assure about the development. Some questions may be on the top priory except for the financial exchange. For example, the future of the current Agora employees. Well, let’s wait and watch!
Let us know your thoughts about this probable acquisition of Agora by Meena Bazar.