Danish competition authorities have approved the new ownership agreement between Coop amba and OK for Coop Danmark.
The new ownership structure will see Coop amba and energy company OK owning approximately half of the business, with the latter having a ‘decisive influence’ over Coop Danmark, regardless of ownership shares.
Michael Løve, CEO of OK, stated, “I am happy that there has been a clear decision from the competition authorities and look forward to joining Coop’s new board.
“There is huge potential in Coop, and I feel, from all parts of the organisation, a desire to create a stronger Coop, for the benefit of customers, and not least the nearly 40,000 jobs that are linked to it. We all know that it will be a long, tough move, with difficult choices and opt-outs, and I think it is precisely this awareness that allows us to succeed.”
Capital Injection
Both parties will contribute DKK 2 billion (€270 million) to Coop Danmark, to strengthen the company’s existing grocery brands: SuperBrugsen, Kvickly, Brugsen and 365discount.
Coop amba, the association behind Coop Danmark, is providing part of the money via the sale of some of the association’s assets, including some from the sale of Coop Bank to Sydbank.
The chair of Coop amba, Pernille Skipper, noted that she was “satisfied” with the approval and added, “It is urgent to reverse the trend in Coop Danmark and make the company profitable again. Without a healthy business, we cannot fulfil the association’s basic task of ensuring good and healthy groceries for the Danes.
“At the same time, it is important that we preserve and develop Coop’s fundamental foundation in the cooperative idea and the member-owned [structure]. I am sure that, in the new and closer collaboration with OK, we will succeed in this.”
