Byggmax is close to an establishment in Denmark.
According to Børsen, Danish consultants now look for takeovers and new business locations for the discount chain.
Now, the Danish building supplies chains fear a price war on an already overestablished market.
The Swedish chain is close to full extension in Sweden and is growing in Norway and Finland. Denmark is missing to make the Nordic market complete. Already some years ago Byggmax procalimed interest in Denmark and looked for positions in Zealand. But the plans were dropped.
Now, the ball is in the air again. Børsen refers to the documentation between Byggmax and advisors to explore acquisition opportunities and finding new store locations.
The Danish consultant Steen Johansen says it will soon be clear to the Danish building trade that a new player is entering.
Byggmax CEO Magnus Agervald won’t confirm anything, but also not dismiss speculation,
“It is clear that there are strategic options in Denmark. We always analyze different markets, but we have not taken any decision to go to new markets, ” Magnus Agervald tells Børsen and says Byggmax will probably not establish in Denmark this year.
”But, you never say never.”
CEO of Saint Gobain Denmark, owner of Optimera- chain, Niels Meidahl, says it will not be good for the Danish market.
”There is overcapacity, and it has been the last three to four years. ”
Also the CEO of Bygma, Peter Christiansen, do not think there is room for one more discount chain in Denmark.
One of the main competitors in the same customer segment would be Jem & Fix, who’s operating in Sweden.
“From Sweden’s view there is no overcapacity in Denmark, where a handful of chains compete on the market, while there are about 20 in Sweden,” says CEO Erling Daell who points out the differences between Jem & Fix and Byggmax.
But Steen Johansen believes the danish industry will go through tough times and says there are more players than Byggmax looking for a Danish opportunity.
”This will accelerate the consolidation and threaten the survival of small and middle sized actors on the market,” he tells Børsen.