Conclusion of sale of 60 stores as a condition of the merger between Kesko and Lähikauppa

In April 2016, the Finnish Competition and Consumer Authority (FCCA) set as a condition for approval of the merger between Kesko and Lähikauppa the requirement that Kesko Food Ltd sell 60 stores of Suomen Lähikauppa to its competitors. A buyer for 10 stores was found by the specified deadline. Kesko Food may decide on the future of the remaining 50 stores itself.

The FCCA identified in the investigation concerning the merger between Kesko and Lähikauppa 60 local markets in which the merger would probably have a negative impact on competition. The Authority obligated Kesko Food to sell the stores in these 60 areas to competing food retailers.

The deadline set for the sale expired on 11 April 2017. A buyer was found for only 10 stores. Failure of the sale will not prove an obstacle to completing the merger, as Suomen Lähikauppa would have exited the market in any case due to its financial difficulties. Kesko Food may decide on the future of the remaining 50 stores itself.

Stores sold and their buyers

  • Siwa Ahjo: M-ryhmä
  • Siwa Asikkala: M-ryhmä
  • Siwa Kangasala: M-ryhmä
  • Siwa Kihniö: M-ryhmä
  • Siwa Paimio: M-ryhmä
  • Siwa Peltolammi: M-ryhmä
  • Siwa Perniö: M-ryhmä
  • Valintatalo Kellokoski: HOK-Elanto
  • Valintatalo Parainen: M-ryhmä
  • Valintatalo Pirkkala: Pirkanmaan Osuuskauppa

Read more:

FCCA to approve a merger between Kesko Food and Suomen Lähikauppa, subject to conditions, FCCA press release, 11 April 2016

Why must Kesko sell specifically 60 stores? Ajankohtaista kilpailusta, blog on 15 April 2016 (in Finnish only)

Further information: Maarit Taurula, Head of Research, tel. +358 29 505 3381