Scandinavia's Axfood And Norgesgruppen Acquire Eurocash
Swedish and Norwegian retailers Axfood and Norgesgruppen have acquired Eurocash AB, the second-largest food retailer on the Swedish-Norwegian border.
Axfood is the main supplier for Eurocash via Dagab, its supply chain organisation. Operating eight outlets, with a turnover of SEK 1.2 billion, the group employs roughly 280 employees.
This deal represents a deepening of relations between the two companies; previously, they only collaborated on purchases of private label products.
Anders Strålman, president and CEO of Axfood, commented on the deal: "The acquisition of Eurocash is part of our strategy to grow sales and strengthen our market share in Sweden. At present Axfood does not have any food retail stores along the border with Norway. We will now gain access to the growing cross-border shopping segment – a market with sales of some SEK 14 billion."
His Norgesgruppen counterpart, Runar Hollevik, added: "We currently have good cooperation with Axfood and see the acquisition of Eurocash as an opportunity to strengthen our relationship. To offer even better stores going forward it is important that we increase our knowledge about markets outside of Norway."
Eurocash will be consolidated into the Axfood Group and will joint Willys in segment reporting. The business will keep its banner name.
The acquisition won't require any personnel changes, and is dependent on antitrust clearance under the Swedish competition Authority and approval from the European Commission.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Sign-up for a subscription to ESM: The European Supermarket Magazine.