Dutch retailer Jumbo to buy competitor for 900 mn euros
Dutch retailer Jumbo is to buy competitor C1000 for 900 million euros, both companies said Thursday, as it aims to become a "competitive player" in the country's retail market dominated by Ahold.
"The aim of the 900-million-euro (U$1.2 million) transaction is to place a large new and competitive player in the Dutch market," C1000's spokesman Ingo Heijnen told AFP.
Jumbo and C1000 expected the transaction, which still needs approval by relevant authorities, to be finalised in the first quarter of 2012.
"The first phase of integration will start as soon as the deal is closed," said Heijnen.
Together, the two retailers own 725 supermarkets and clock sales of 7.5 billion euros, representing 23 percent of the Dutch market share.
With the deal the companies now will "take second place in the Dutch supermarket landscape," Jumbo chief executive Frits van Eerd said in a press release.
The large and medium-size retail sectors in the Netherlands are dominated by the Ahold group, whose brands include Albert Heijn and its liquor stores Gall & Gall.
Founded in 1921, Jumbo had 255 stores in the Netherlands by 2010 and recorded a turnover of 1.77 billion euros last year.
© 2011 AFP