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Kesko to invest in Finland by acquiring Suomen Lähikauppa -Siwa and Valintatalo stores return to Finnish ownership
KESKO CORPORATION STOCK EXCHANGE RELEASE 18.11.2015 AT 09.00 1(3)
"In line with its strategy, Kesko is seeking growth in the grocery trade. One of the focus areas for growth is to increase and renew the neighbourhood store network. We want to develop the accessibility, quality and price competitiveness of neighbourhood retail services that suit Finnish consumers. At the same time, the transaction will enable significant synergies. Suomen Lähikauppa has excellent business locations and the acquisition will enable us to implement our strategy faster than planned and with significantly lower capital expenditures. Competition in the Finnish grocery trade is tough and the weakening of consumers' purchasing power has intensified it," says Kesko's President and CEO .
Suomen Lähikauppa has concentrated on grocery stores located close to customers. In 2014, Suomen Lähikauppa's net sales were EUR999.2 million and loss before tax was EUR11.6 million.
"We have a long established focus on neighbourhood retailing and we possess special expertise and experience in this market. The transaction will enable Finnish neighbourhood retailing to be developed and it will open up significant new opportunities to serve Finnish consumers. This is definitely a good alternative also for Suomen Lähikauppa," says , President and CEO of Suomen Lähikauppa.
Kesko has specified its capital expenditure plan for the upcoming years further, taking account of the acquisition to be completed, as well as the continuously challenging general economic situation, especially in Finland and Russia. Kesko estimates that its capital expenditure in 2015-2017 will decrease from the approximately EUR1 billion announced in the strategy to EUR750 million, excluding possible acquisitions.
The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority and the fulfilment of the other terms and conditions of the transaction. The handling of the matter and the acquisition are expected to be completed in the first half of 2016.
Briefing in Finnish at Kesko today at 11.00 (Finnish time)
Kesko will hold a briefing on the acquisition today, Wednesday, 18 November 2015 at 11.00 (Finnish time) in the auditorium at Ankkurikatu 5, Helsinki (Katajanokka). The briefing can be viewed on webcast at www.kesko.fi.
Audio conference in English today at 14.30 (Finnish time)
An English-language audio conference on the acquisition will be held today at 14.30 (Finnish time). The audio conference login is available at www.kesko.fi.
Jukka Erlund, Chief Financial Officer, tel. +358 105 322 113 Jorma Rauhala, Senior Vice President, grocery trade, tel. +358 105 322 211 Lauri Peltola, Senior Vice President, corporate responsibility, communications and stakeholder relations, tel. +358 105 322 400
Kesko Corporation
Merja Haverinen
Vice President, Group Communications
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