Swedish grocery retailer Axfood has said it has ended its attempt to acquire the retail business of Finnish food chain Tradeka.
“Following a period of careful evaluation of Tradeka’s store and wholesale structure, as well as the store concept, Axfood’s board has decided to end its attempts to acquire Tradeka’s retail business,” said Mats Jansson, president and CEO of Axfood.
One of Axfood’s strategies is to increase its presence in the Nordic region, particularly in Finland, where Axfood owns a majority stake in Spar Finland. Axfood sees its 8% market share in Finland as too low from a long-term perspective. Finnish food chain Tradeka had been identified as a potential future partner.
“However, we are sticking to our strategy of growth in the Nordic region,” said Jansson. “Since Axfood’s start we have pursued an investment and growth strategy that aims to achieve the best possible return for our shareholders, regardless of whether it concerns an individual store acquisition or a large company.”