Sources inform "Globes" that Fishman Retail Chains subsidiary Best Buy Marketing Chains, which sells electrical appliances, is negotiating a merger with ALM Trade, a competitor and subsidiary of Mini Line (TASE: MINI). The parties are also considering including Mini Line, which imports the Samsung Electronics and King electronics and electrical brands, in the merger.
Best Buy, which has been losing money for a number of years, spent NIS 9 million last year on setting up three Big Box concept outlets. Best Buy’s 2005 sales are believed to have totaled NIS 180-200 million, compared with an estimated NIS 250 million for ALM.
Best Buy recently signed a framework agreement with Sakal Brothers to buy most of the Sakal Electric branches. Best Buy has also signed an agreement to acquire 50% of Sakal’s import franchise for Hyundai’s electrical and electronics brand. At this stage, however, it is unclear whether the deal will go through, since the parties have not yet agreed on the price.
Fishman Retail Chains chairman Eyal Fishman recently said that he intended to achieve a 10% share of the estimated NIS 4 billion annual electrical and electronics goods market through two separate brands: Best Buy and Big Box. Each of these has a sales target of NIS 200 million. Before setting up the Big Box chain, Best Buy’s market share was 4%.
Best Buy does not directly import the goods sold in its stores. If the negotiations with ALM lead to a merger, this problem will be solved through the use of Mini Line’s electronics and electrical brands.
Fishman Retain Chains controlling shareholder Eliezer Fishman is the controlling shareholder of "Globes".
Published by Globes [online] - www.globes.co.il - on January 24, 2006