The Finnish Competition and Consumer Authority has granted Kesko permission to acquire Suomen Lähikauppa
KESKO CORPORATION STOCK EXCHANGE RELEASE 11.04.2016 AT 14.00 1(2)
The Finnish Competition and Consumer Authority has granted Kesko permission to acquire Suomen Lähikauppa
The Finnish Competition and Consumer Authority (FCCA) has approved the acquisition in which Kesko Food Ltd, a Kesko Corporation subsidiary, acquires Suomen Lähikauppa Oy. The permission contains conditions imposed by the Finnish Competition and Consumer Authority. The completion of the acquisition is also subject to the fulfilment of the other terms and conditions of the transaction. As the acquisition is completed, the K-Group will increase its neighbourhood market network in accordance with its strategy and the neighbourhood retail services valued by Finnish consumers will improve significantly.
According to the decision of the FCCA, Kesko has been granted permission to acquire Suomen Lähikauppa Oy. The condition imposed by the FCCA to the acquisition is an obligation to sell 60 stores of Suomen Lähikauppa Oy to competitors. In case the sale of some store or some stores is not possible, the selling obligation imposed on Kesko Food Ltd will cease. The FCCA also imposed an obligation that after the acquisition has been confirmed, Suomen Lähikauppa Oy, which transfers to Kesko Food Ltd's ownership, shall continue purchases from Tuko Logistics Osuuskunta during a fixed period in accordance with the conditions set by the FCCA.
In line with its strategy, Kesko seeks growth in the grocery trade and one of the focus areas for growth is to increase and renew the neighbourhood store network. The acquisition will enable Finnish neighbourhood retailing to be developed and it will open up significant new opportunities to serve Finnish consumers. In 2015, Suomen Lähikauppa's net sales were €935.7 million, it has around 600 Siwa and Valintatalo stores and around 3,800 employees.
The completion of the acquisition is yet subject to the fulfilment of the other terms and conditions of the transaction. Kesko's objective is to complete the acquisition as soon as possible. Kesko announced the acquisition in a stock exchange release on 18 November 2015.
Further information:
Jorma Rauhala, Executive Vice President and Senior Vice President for the grocery trade, tel. +358 105 322 211
Jukka Erlund, Senior Vice President, Chief Financial Officer, tel. +358 105 322 113
Lauri Peltola, Senior Vice President, communications, corporate responsibility and stakeholder relations, tel. +358 105 322 400
Kesko is a Finnish listed trading sector company. Kesko operates in the grocery trade, the home improvement and speciality goods trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. In 2015, Kesko's net sales totalled €8.7 billion and it employed nearly 20,000 people. Kesko has over 1,500 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia and Belarus. Kesko's shares are listed on Nasdaq Helsinki. The company's domicile and main premises are in Helsinki. Kesko is the most sustainable trading sector company in the world (Food and Staples Retailing, The Global 100 Most Sustainable Corporations in the World). www.kesko.fi
Suomen Lähikauppa concentrates on neighbourhood services. We take care of the needs of residents in the neighbourhood, we bring together services and provide a good service experience - readily, conveniently and fast. Suomen Lähikauppa has two nationwide store chains: Siwa and Valintatalo. The network of Siwa stores is Finland's most comprehensive.
Kesko Corporation
Merja Haverinen
Vice President, Group Communications
DISTRIBUTION
Nasdaq Helsinki Ltd
Main news media
www.kesko.fi
