Magnit, one of Russia's leading retailers, acquired SIA Group, one of Russia's leading pharma distributors. Financial terms were not disclosed. Magnit CEO Khachatur Pombukhchan said: "We think that the Russian pharmacy retail market is one of the most attractive for expansion. This segment is big enough - at more than one trillion Rubles, which comprises 10% of the food retail market and has demonstrated solid growth over the last few years. Nonetheless, the pharmacy segment has not yet been consolidated and thus, a strong player, like Magnit, should be capable of capturing significant market share compared to other large competitors. Besides, pharmacies and food stores are mutual drivers of customer traffic which should provide a multiplier economic effect. Magnit needs to build an in-house logistics platform in order to roll-out and integrate pharmacies into existing and new Magnit stores. On May 17, 2018 the Board of Directors approved the updated strategy for pharmacy retail development, including as one of the options the development of a logistics platform by means of acquisition of the existing distribution business. It will enable Magnit to grow the scale and scope in as short a time as possible and to enter the pharmacy retail market with a significant competitive advantage. SIA Group best meets Magnit's requirements with respect to regional coverage, assortment range and logistics capacity. In order to estimate the potential benefits, Magnit will conduct the due diligence phase with the help of international consultants".