The Slovenian retail chain Mercator said in a statement on Wednesday it was suspending negotiations with the Croatian food concern Agrokor on conditions under which it was ready to allow due diligence for the sale of a majority stake in Slovenia's largest retailer.
Mercator's Management Board decided to suspend the negotiations after it was formally notified that Agrokor was acting alone rather than in a consortium with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) as previously announced.
The Management Board of Mercator has decided that further support for the sale of a majority stake is not possible, because due to the absence of key parties, the EBRD and the IFC, it is not possible to conclude an agreement to protect the substantial interests of Mercator Group. Such an agreement was a prerequisite for our support to the sale process, the statement said.
Mercator notified the Slovenian consortium of sellers of Mercator shares, consisting of the Pivovarna Lasko brewery and Slovenian banks, of its decision. It said it was willing to study again the possibility of resuming the suspended sale process if at least one of the financial institutions, either the EBRD or the IFC, joined the consortium.
Agrokor declined to comment on the position of the Mercator Management Board, saying it was continuing negotiations with Mercator's owners.
Agrokor submitted a non-binding bid for the purchase of a 52% stake in Mercator on October 17.
