The agreement was signed by Mercator chairman Toni Balažič and Agrokor CEO Ivica Todorić after Agrokor signed on Friday a deal to acquire 53% of Mercator from 12 owners.

Balažič had announced already on Monday that a deal for protecting Mercator's interests in the deal would be concluded.

The document deals primarily with cooperation between the companies in the period until the transaction is completed - which given the need for regulatory approval could take months - but also provides guarantees for Mercator's operations after that period.

The document thus sets down that Mercator will remain an independent entity that would run Agrokor's retail operations in Slovenia, Serbia and Montenegro, according to a press release from Mercator.

Moreover, the company will not be obliged to provide any guarantees, loans or other forms of security for Agrokor's liabilities for a period of at least three years after the takeover is completed.

In addition to retaining Mercator's HQ in Ljubljana for ten years, Agrokor also pledges to retain the Mercator brand in this period.

Trading in Mercator shares is to continue on the Ljubljana Stock Exchange (LJSE) for at least five years, unless Agrokor acquires more than 90% of the company before then.

Under the agreement, Mercator will also be able to retain a two-tier management system for at least three years, while Agrokor would not make changes to collective bargaining agreements at Mercator in this time.

The Croatian group also pledges not to alter the position of Slovenian suppliers at Mercator for at least three years.

In the interim period before the EUR 240m transaction is completed, Mercator pledged to keep Agrokor informed of all important developments at the company.