Rema 1000’s acquisition of Aldi’s community of shops in Denmark is beneath investigation.
The Danish Competitors Authority’s (DCA) investigative dive into Norwegian low cost grocer Rema 1000’s acquisition of Aldi’s community of shops in Denmark displays a rising concern amongst Nordic authorities over lack of wholesome competitors in a concentrated retail sector.
The acquisition, introduced in December, features a portfolio of 114 Aldi retailer areas and three distribution facilities in Denmark. If accepted, it will make Rema 1000 Denmark’s largest meals retailer.
Phrases of the deal weren’t disclosed.
The DCA discovered points of the settlement troublesome, together with inadequate proof that it will improve competitors within the Danish grocery market. The regulator is now taking a extra forensic view of the deal and the influence it might have on provide chains, meals costs, and total market competitors. The three-month course of may even assess the implications for shopper safety in a post-deal panorama.
The Aldi acquisition might push Rema 1000’s share of Denmark’s grocery retail phase near 40%. The deal had its genesis a 12 months in the past, when the German retailer known as Ole Robert Reitan, CEO of Reitan Group AS that owns Rema 1000, to inform him it needed to wind down operations in Denmark. Reitan known as Rema 1000’s Danish presence a “implausible story of development” and touted the Aldi acquisition as “an necessary step” in strengthening its place.
The dimensions of Reitan’s present retail enterprise throughout the Nordic and Baltic markets has made the DCA extra conscious of competitors points, nevertheless. Reitan Retail generated revenues of $11.65 billion from 3,850 shops throughout Scandinavia and the Baltic area in 2022. With 42,000 workers, Reitan Retail’s portfolio contains 7-Eleven, Narvesen, Pressbyån, R-kioski, Uno-X, and YX along with REMA 1000 in Norway and Denmark.
Reitan Retail traditionally used geo-strategic acquisitions to drive development. In 2000, Rema 1000 merged with Narvesen to create the Nordic area’s largest comfort retailer chain. In 2012, Reitan Retail paid $140 million for Sanoma Oy’s portfolio of 1,000 comfort mini-stores in Finland, Estonia and Lithuania.
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