Sklavenitis plans to boost its presence in the Cypriot market with the big Greek retail company currently in talks with Papantoniou supermarkets about a potential merger, according to a Capital.gr report.
If the attempted merger becomes a reality then the island’s retail market landscape will certainly change considering that Papantoniou now owns nine stores and Sklavenitis operates 18 supermarkets across Cyprus.
The two companies together generate over 300 million euros annually – approximately €200 million for Sklavenitis and another €120 million for Papantoniou, according to latest data.
Apart from acquisition discussions, the report said that Sklavenitis has also been in negotiations on the possibility of acquiring individual stores.
If Sklavenitis reaches an agreement with one of the local players and succeeds in strengthening its presence here on the island, significant upheavals in the existing environment of organised retailing in Cyprus should be expected.
Papantoniou seems unwilling to sell mainly for prestige reasons considering that it is a highly a reputable business in the Cypriot market – based in Paphos.
In total, there are about 80 large supermarkets in Cyprus. The competition for market dominance seems to hinge on the market perception in the capital Nicosia, which commands the largest share, around 40% of the market, followed by Limassol with 30%.