Asda buys Netto

Walmart-owned supermarket Asda has agreed a £778 million deal to acquire Netto Foodstores.

The 193 Netto stores in the UK, which are owned by Dansk Supermarket, will all be converted to small Asda stores by the end of the 2011 summer. The transaction itself, which is still awaiting regulatory approval, is expected to come to a conclusion by the end of this summer.

Commenting on the acquisition, Asda president and chief executive Andy Clarke said: “We very much look forward to welcoming Netto’s colleagues into our business and joining our team. 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.

“The creation of new in-store jobs in a tough economy will also be a welcome boost in scores of communities across the UK.”

Managing director of Netto, Claus Juel-Jensen, said the transaction has taken place to enable his company to focus more on its more local markets.

He said: "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.”

Netto was established in the UK in 1990. It’s the market leader in Denmark and among the fastest growing discounters in Germany, Poland and Sweden.

Jane Parkinson, 27.05.2010