Kesko will begin the conversion of Siwa and Valintatalo corner shops into K-markets next month after securing the requisite approval for its takeover of the operator of the corner shops, Suomen Lähikauppa.
The retail conglomerate states in a press release that the conversions, which are to be completed by the end of next year, will be part of a thorough renewal of its grocery shop network. “As the store network expands, Kesko will recruit and train hundreds of new K-retailers,” it highlights.
Kesko Food, a subsidiary of Kesko, acquired all outstanding shares in Suomen Lähikauppa from the private equity firm Triton for 60 million euros after the Finnish Competition and Consumer Authority (KKV) gave its approval for the takeover on Monday.
- KKV to look closer into Kesko's proposed takeover of Suomen Lähikauppa (14 January, 2016)
- Kesko to take over rivals Siwa and Valintatalo (19 November, 2015)
KKV announced in a press release, however, that its approval is conditional on the willingness of Kesko to sell 60 shops operated by Suomen Lähikauppa to rival retailers and commit to using the same wholesale suppliers as Suomen Lähikauppa for a fixed time period.
“We will now begin to write a new chapter in Finnish neighbourhood retailing with the objective of doubling the footfall in our neighbourhood stores. The acquisition also supports the development of other K-Group grocery stores,” says Mikko Helander, the chief executive of Kesko.
“Suomen Lähikauppa has excellent business locations and the acquisition will enable us to implement our strategy faster than planned and with significantly less capital expenditure. The acquisition also enables significant synergies,” he adds.
Aleksi Teivainen – HT
Photo: Emmi Tulokas – Lehtikuva
Source: Uusi Suomi