The Russian retail powerhouse Magnit has reached an agreement to acquire a controlling interest in the upscale supermarket chain Azbuka Vkusa, in a transaction valued between 35 and 40 billion rubles (approximately $428 to $490 million), as reported on Wednesday by the RBC news agency, which cited three insiders familiar with the negotiations.

Established in 1998, Magnit is the second-largest retailer in Russia, operating nearly 31,500 stores selling food and household goods across the country, and holding a 13.2% share of the retail market.

Founded in 1997, Azbuka Vkusa runs 170 supermarkets and minimarkets in Moscow and the surrounding areas, as well as in St. Petersburg, under its parent company Gorodskoy Supermarket. Despite the increasing demand for small urban outlets, the chain has not seen any expansion in recent years.

As part of this acquisition, Magnit will also take ownership of five kitchen manufacturing facilities and three distribution centers located in Moscow and St. Petersburg, according to RBC.

A source mentioned that the agreement will not impact the branding or management of Azbuka Vkusa stores.

Both Magnit and Azbuka Vkusa have yet to make any public statements regarding the reported acquisition.

In 2024, Magnit’s revenue increased by 19.6%, surpassing 3 trillion rubles ($34.8 billion). Gorodskoy Supermarket also experienced growth, with a 17.3% rise in revenue, reaching 101.2 billion rubles ($1.2 billion), and a remarkable 450% surge in net profit to 3.6 billion rubles ($44.1 million).