Thursday, April 27, 2000
Ahold, the food provider, and the leading Scandinavian food retailer ICA Group, successfully completed their new joint venture. For its 50% stake in the ICA Group, Ahold paid today an amount of Euro 1.8 billion.
Earlier, stockholders of the ICA Group approved the joint venture and the European Commission gave its green light. The other half of the joint venture 'ICA Ahold Holding AB' is owned by ICA associated retailers (30%) and Canica (20%), the investment company of the Norwegian Hagen family.
The ICA Group, with 1999 sales of Euro 6.6 billion, is market leader in Sweden and ranks second in Norway. Over 3,100 supermarkets, hypermarkets and discount stores are associated with the ICA Group. In addition, ICA holds a non-consolidated 50% stake in Statoil Retail. Statoil Retail had 1999 sales of Euro 2.9 billion. Statoil Retail operates 1,500 gas stations in Sweden, Norway and Denmark with small stores which can be developed into convenience stores. The ICA Group also services institutional customers.
Through know-how exchange, the use of economies of scale and synergy benefits, the partnership with ICA is expected to strengthen Ahold's position in Europe considerably and grants the opportunity to expand elsewhere in Northern Europe. Synergies are expected to amount to a minimum of Euro 33 million over the first twelve months and Euro 50 million during the first full calendar year.