Three Scandinavian retail cooperatives merged yesterday to form Coop Norden. The new entity will have annual sales worth €8-9bn and be the dominant retailer in the region. Formed by the merger of KF of Sweden, FDB of Denmark and Coop Norge of Norway, the new company will employ some 26,000 staff and operate 2,500 outlets.
Reflecting the respective size of the three merger partners, KF will hold 42% of the new company, while FDB will own a 38% stake and Coop Norge the remaining 20%. It will have around 30% of the retail market across the region in which it will operate.
“Our vision is that Coop Norden will become the leading and most innovative foods group in the Nordic region, with a clear cooperative profile,” said Roland Svensson, CEO and president of KF.
The deal is subject to formal approval by the members of the existing cooperatives in June this year. This hurdle overcome, the new company is set to start trading at the beginning of next year.
When news of the merger emerged last year, it met with a lukewarm reception from the industry. For more details, please click here.
just-food.com recently published a feature on retail consolidation in the Nordic countries. To read it, please click here.