Swedish retail group ICA has announced that it has signed an agreement to acquire Lithuanian-based UAB Palink, which operates the grocery-retail business IKI, for €213 million.
The purchase means that ICA will now become the second-largest player in the Lithuanian grocery market, where it currently operates the Rimi Baltic business. It is currently in fourth place in the country.
ICA said in a statement that the ‘transaction is expected to generate yearly cost synergies of approximately €15 million when fully realised in 2020’.
“Lithuania is the largest market in the Baltic region, but also the country in which Rimi Baltic has had the lowest market share,” said Per Strömberg, CEO of ICA Gruppen.
“This implies a quick upscaling of the business and enables significant cost synergies. IKI is characterised by well-developed stores with a high service level and a broad assortment. Moreover, IKI’s store network is a good complement to Rimi’s existing store network. The acquisition benefits Rimi’s and IKI’s customers and is creating value for ICA Gruppen’s shareholders.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
