Finnish food retailer Kesko Food and oil refiner and marketer Neste Marketing have signed an agreement under which Kesko Food acquires Neste Marketing's 50% holding in Pikoil, a company operating in the liquid fuels and grocery retail market.

Pikoil was established in 2003 and the parties have owned it on a 50-50 basis. As a result of the deal, Kesko Food becomes the sole owner. The deal is subject to the approval of the Finnish Competition Authority and the fulfilment of certain other conditions.

The framework of Pikoil's operations consists of K-pikkolo stores, Neste Motorest service stations with restaurants and Neste K-pikkolo service stations with grocery stores. The company operates over 130 business locations and employs about 1,400 people.

Kesko said the deal is in line with its strategy to strengthen the company's position in the service station market. Plans have been made to expand and develop Pikoil's operations further. Cooperation with Neste Marketing in fuel distribution will continue on current terms.