Swedish retailer ICA Gruppen has proposed the sale of 17 of its Rimi stores in Lithuania, in order to proceed with its acquisition of UAB Palink, which runs the IKI retail chain.
ICA announced that it had signed an agreement to acquire UAB in December, for €213 million, however, the Lithuanian Competition Authority has raised concerns about certain geographical areas.
As a result, ICA has proposed this sale of some of its portfolio in the country, through its Rimi Lithuania subsidiary, and a final decision from the Competition Authority is expected before the end of October.
IKI is the second-largest player in the Lithuanian grocery market, with a retail network of around 230 stores nationwide, while ICA operates just under 60 Rimi stores in the country.
Per Strömberg, CEO of ICA Gruppen, described IKI as a "good complement to Rimi's existing store network", adding that a merger would be beneficial to both parties and their customers.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.