On an agreement to purchase two mega-stores from their pavilions, the competition authority approved the deal.
How about the Rami Levi stock:
|Strong buying||Buy||wait on||sale||A strong sale|
Following the approval and because these are stores that have been renovated in recent years, Ravid is expected to replace the signage and operate it within about a week.
These are two mega flagship stores in Ayalon Mall in Ramat Gan and in Malcha Mall in Jerusalem, which Nehum Pavilion, which needs cash to deal with the credit crunch it is in, sold for NIS 35 million.
For Ravid, the deal allows for a first foothold in Jerusalem, which is considered Rami Levy’s territory.
The store in Ayalon Mall is considered to be the Shufersal Mythical Store, which had to sell it over a decade ago to Mega following the purchase of a clubmarket which had a branch nearby.
The deal is expected to strengthen Ravid, as the sale of the two stores is estimated at NIS 150 million a year, which together with five other stores he purchased from their home in recent months, will increase network sales to NIS 2.5 billion in 2020.