Feeds

Dixons looks to Russian Eldorado for growth

'Imaginary land of wealth' apparently

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Dixons is considering expanding its electrical retailing empire to Russia and the Ukraine following the inking of a long-term co-operation deal with the Eldorado Group.

Dixons has until 2011 to acquire the Russian consumer electronics retailing group for £1bn. Under the agreement Dixons does not have to acquire Eldorado. Instead, it has the right to buy the group.

To secure the acquisition, Dixons would need to snap up an initial 10 per cent of Eldorado's equity by 2008. The price for 100 per cent of the equity of Eldorado Group is fixed at $1.9bn (£1bn).

Said Dixons chief exec John Clare: "Russia is a market with enormous potential and Eldorado Group is the ideal strategic partner. By entering into this agreement we will work closely with Eldorado Group management to develop a better understanding of the Russian market before committing the group financially."

With 610 stores, Eldorado Group is the biggest retailer in Russia with an estimated market share of around 22 per cent. Last year it notched up sales of $2.5bn (£1.3bn).

By midday shares in Dixons were up 1p (0.67 per cent) to 150p. ®

Related stories

Dixons mulls The Link sell-off
Festive sales boost Dixons
Dixons ditches the video recorder

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.