Open Joint Stock Company Pharmacy Chain 36.6 and A5 Pharmacy Ltd. are holding talks over merging their businesses, reported Kommersant citing a source close to one of the co-owners of an unnamed pharmacy chain. Sergei Solodov, co-owner of A5 confirmed the possibility. Sergei told PRIME, “The information in mass media is not entirely correct.

Yes, we are holding talks on a merger, though there is nothing certain so far, no agreements have been signed yet. We are communicating with all the companies on the market, holding talks over merging with many pharmacy chains, including 36.6. The negotiations are at the first stage, and an agreement of intent may be signed in the near future." If the deal proceeds, 36.6 intend to hold an additional share offering to buy A5. A source familiar with the talks said that the parties have been discussing the merger since the end of 2012.

Until the end of January 2013, A5 is bound by an agreement with food retailer X5 Retail Group N.V., which has an option to acquire up to 100% in A5. Solodov said that it became clear at the end of January 2013, that X5 would not make use of the option. A5 and X5 Retail Group will sign a softer agreement soon, under which the food retailer will take part in the A5's sale.