Kesko must sell 60 stores to competitors

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The Finnish Competition and Consumer Authority has granted Kesko permission to acquire Suomen Lähikauppa, but with an obligation to sell 60 stores to competitors.

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.

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.

Kesko states 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 EUR, 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  18 November 2015.