Coop amba, the association behind Coop Danmark, will close down its corporate venture division Coop Invest as it seeks to simplify its management structure.
Going forward, Coop amba's board of directors will handle the overall management of the companies under the Coop Invest group, it added.
The initiative is part of the measures implemented by Coop amba to focus on the capital injection in Coop Danmark.
Chair of Coop amba, Pernille Skipper, commented, "We have put almost everything that Coop amba has into Coop Danmark to secure the future of the largest subsidiary and one of Denmark's largest companies with around 40,000 employees.
"Therefore, the association cannot afford to have the same setup as today. It is a premise that it must be cheaper to run Coop amba, and that is why we on the board have decided to simplify the structure around Coop Invest."
Recently, Coop amba entered into an agreement with Sydbank to sell Coop Bank.
Coop Invest
Coop Invest is responsible for several companies wholly or partly owned by Coop amba. It has also functioned as an incubator for companies that can be sold at the right time.
Following the closure, FDB Møbler, the advertising agency Republica, and African Coffee Roasters will become direct subsidiaries under Coop amba.
Coop amba will continue to own 50% of Catering Danmark and Quick Info and there will be separate boards for the individual companies.
Skipper stated, "At Coop amba we are proud of all our subsidiaries. It has been central to the reorganisation of the structure that the simpler and cheaper approach first and foremost provides security and stability for them.
"When we formally close Coop Invest, set up a fast-working executive committee and assemble all Coop amba's activities under a strong CFO, we seek to give the subsidiaries assurance that we have their well-being as our highest priority."
New Structure
The new structure will come into place when the agreement with OK on a 50/50 ownership structure for Coop Danmark is approved by the competition authority.
Until then, Coop amba will set up a smaller, temporary board for Coop Invest comprising the chair of Coop amba, Pernille Skipper; deputy chair, Kristine Martin Berg; and board member, Christian Busch.
After the closure of Coop Invest, the same members will form an executive committee, which under Coop amba's board of directors will look after the interests of the subsidiaries.
In recent years, Coop Invest's board comprised the chairman of Coop amba, one member from Coop amba's board, and three externally appointed board members.
