Market Court to review Kesko’s acquisition of Heinon Tukku

Press release / 18.11.2019 16:10

In May, Kesko announced that it had agreed to acquire the wholesaler Heinon Tukku Oy from the family-owned company Tukkuheino Oy and private individuals, and noted that the acquisition was subject to approval by the Finnish Competition and Consumer Authority and the fulfilment of the other terms and conditions of the transaction. Today, the Finnish Competition and Consumer Authority proposed to the Market Court that the transaction be prohibited. The proceedings will continue in the Market Court.

The proposal by the Finnish Competition and Consumer Authority suggests that if completed, the acquisition would significantly weaken competition in the sales of grocery items to foodservice customers.

“The foodservice market in Finland is very fragmented and highly competitive. In our view, the acquisition will make offering in the growing foodservice market more versatile. The acquisition will bring significant benefits to the customers and suppliers of Kespro and Heinon Tukku, thus causing the whole sector to evolve. The development of our foodservice business is a central part of the strategy for Kesko’s grocery trade division,” says Ari Akseli, President of the grocery trade division.

Proceedings concerning Kesko’s acquisition of Heinon Tukku will continue in the Market Court, which is expected to issue a decision on the matter within three months.

Further information:

Ari Akseli, President, grocery trade division, tel. +358 105 323 490
Mika Majoinen, EVP, Group General Counsel, tel. +358 105 322 206
K Group media desk (Mon-Fri 8-16), tel. +358 105 350 200, viestinta@kesko.fi

Kesko and K-retailers together form K Group, whose sales total €13 billion. K Group is the third biggest retail operator in Northern Europe and it employs some 43,000 people. Kesko operates in the grocery trade, building and technical trade, and car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko's net sales total €10 billion and it employs approximately 23,000 people. Kesko has around 1,800 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Belarus and Poland. Kesko’s shares are listed on Nasdaq Helsinki. The company's domicile and main premises are located in Helsinki. Kesko is the world's most sustainable trading sector company (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi

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