Allegro, Poland’s largest online trading platform, announced that it had reached an agreement to take over online retailer Mall Group from Czechia.
The value of the transaction is around 881 million euros as Reuters reports.
Allegro would take over the Mall Group’s e-commerce assets and the courier company WeDo from Rockaway Capital, PPF Group and EC Investments.
The final price of the transaction could be increased by up to 50 million euros, depending on the Mall Group meeting certain short-term objectives.
Merging Allegro and Mall Group will give rise to a company that will operate in Czechia, Republic, Slovakia, Hungary, Slovenia, Croatia and Poland.
Buyers will have acces to an improved offer, prices and proximity, and over 135.000 merchants will be able to list their products on a single platform.
Allegro has become the largest company on the Warsaw Stock Exchange, but will have a bigger competition after Amazon launched its Poland local website this year.
Amazon’s entry in Poland is likely to change and stimulate the growth of the local e-commerce market, which is expected to reach USD 25 billion in 2024.