Merlin.pl is one of Poland's oldest internet retailers

Czerwona Torebka, which manages a network of shopping centers, has signed a preliminary agreement to buy 99.6 percent in Merlin.pl, one of Poland's oldest and largest online retailers. Czerwona Torebka will take over Merlin.pl in exchange for newly issued shares.

If the acquisition goes through, Czerwona Torebka would like to install Merlin points for clients to pick up their orders placed online. "This solution will offer Merlin.pl a way to reach its clients directly. The number of personal delivery points could be up to 4,500. It will also allow Czerwona Torebka group to get another tenant for its malls, and generate a considerable amount of customer inflow," Czerwona Torebka said in a statement.

Merlin.pl has been a takeover target for quite some time now. In mid-2010, it was announced that sector giant Empik would take over Merlin.pl, but the deal failed to win approval from regulators. Czerwona Torebka's takeover will need to be approved by regulators as well.

Czerwona Torebka is a WSE-listed company, founded by Mariusz Świtalski, who created popular retail discount chains Biedronka and Żabka. It currently operates 79 sites and by the end of 2021 it plans to open 1,900 shopping arcades across Poland.

Merlin.pl is one of the oldest Polish e-retailers. It was founded in 1998 as an internet bookstore. It later expanded into selling other products, such as electronics and toys. In 2012 it recorded a zł.3.8 million net loss.

JC, KW