Wal-Mart eyes £1bn-plus takeover of Turkey's Migros Ticaret

Wal-Mart eyes £1bn-plus takeover of Turkey’s Migros Ticaret

Wal-Mart, the world’s largest retail group, has been in protracted on-off talks to buy BC Partners’ 80pc stake in Migros for several months, according to City sources.

As one of Turkey’s major supermarkets, a deal would hand Wal-Mart exposure to a fast growing emerging market with an increasingly wealthy consumer.

Bankers from JP Morgan are advising the UK private equity firm on the potential deal while Barclays is working with Wal-Mart, which bought Asda in 1999 for £6.7bn.

Although Wal-Mart has yet to submit a formal offer for Migros, sources claimed the US company is expected to make a non-binding offer imminently so that it can get access to the supermarket chain’s books. Wal-Mart is then expected to make an offer in the first quarter of next year.

Speculation about a potentail takeover of Migros has been rife in recent months. Earlier this week a spokesman for Tesco’s Turkish division – Tesco Kipa – denied it was in talks to buy Migros .

French retail giant Carrefour has also been tipped as a potential purchaser . The world’s second-largest retailer was reported in September to be considering a combination of its Turkish business with Migros .

BC first bought a stake in Migros in 2008 in a deal that valued the equity in Turkey’s biggest supermarket group at $3.25bn (£2bn). The deal was Turkey’s biggest ever private equity takeover . BC teamed up with Turkven, a buy-out firm, and DeA Capital, the private equity arm of Italy’s De Agostini group, to buy a 51pc stake in Migros.

The consortium later increased its holding in Migros to almost 100pc by buying out minority shareholders. Last year, BC sold almost 20pc of the company back to public market investors .

Wal-Mart and BC declined to comment.

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