UK Netto stores are expected to trade under an Asda fascia by summer 2011. (Photo: Stock File)

Asda buys Danish shipper's supermarket chain

Dansk Supermarked A/S on Thursday entered into an agreement to sell its fully owned subsidiary British supermarket chain Netto Foodstores Limited to Asda Stores Ltd for GBP 778 million (EUR 917.2 million) on a cash and debt free basis.

“Netto UK has been profitable and was appointed ‘Discounter of the Year’ in 2009 in the UK,” said Erling Jensen, CEO of Dansk Supermarked A/S. “We have substantial opportunities for growth in Scandinavia and Northern Europe and believe that the time has come to focus our efforts on the development of our business in these countries.”

“As a major league player Asda is an ideal purchaser of our UK business. Dansk Supermarked will continue to invest in Netto and will continue to have a strong focus on growing the business in line with the strategy as set out by the board and supported by our owners who see retail as a well-performing and core business area,” Jensen added.
 
The agreement is part of an effort to develop Dansk Supermarked A/S’s business in Denmark, Sweden, Germany and Poland.

The deal is still subject to regulatory approval by UK competition authorities and its completion is anticipated for September.

Asda expects to finish the refurbishment of the Netto stores to trade under an Asda fascia by mid-2011. Until official approval is granted, all UK Netto stores will operate normally under existing management.

“Customers will benefit from low prices on a significantly broader range of quality products, complemented by the wide range of services we offer in all our smaller stores,” said Asda President and Chief Executive Andy Clarke. “The creation of new in-store jobs in a tough economy will also be a welcome boost in scores of communities across the UK.”

The transaction will create an accounting gain in the order of DKK 4.6 billion (EUR 618.3 million) for Dansk. The total consideration and the accounting gain may be lowered contingent on the amount of regulatory remedies needed to acquire approval.

Netto Foodstores Ltd owns Dansk Supermarked’s UK retail business made up of 193 Netto stores. Before the transaction, Dansk Supermarked owned over 1,300 brand name outlets with more than 43,000 employees.

After the transaction, Dansk Supermarked owns more than 1,100 outlets with some 40,000 employees. Danish container shipping and oil group AP Møller – Mærsk A/S has been co-owner of Dansk Supermarked A/S since 1964 and has an ownership interest in Dansk Supermarked A/S of around 68 per cent.

By Natalia Real
[email protected]
www.seafood.media

Address:	Bjødstrupvej 18
City:	Højbjerg
State/ZIP:	(DK 8270)
Country:	Denmark
Phone:	+45 89 30 30 30
E-Mail:	[email protected]
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