The Danish company Salling Group, owner of the Netto chain, on Tuesday, March 16th finalized the acquisition of Tesco’s Polish business – 301 stores and two distribution centers.
“The money was transferred to my friends at Tesco,” confirmed Per Bank, the president of Salling Group. The takeover was possible thanks to the consent of the Office of Competition and Consumer Protection.
Salling Group reached an agreement with Tesco on the purchase of the Polish part of the British business in June 2020. The transaction was valued at 900 million PLN (equivalent to 181 million pounds sterling). Since then, the final approval of UOKiK, in this case, was awaited. Following Friday’s decision by the office, the deal was finalized.
“In addition to the strong growth in online food sales this year, expansion in Poland is a cornerstone of Salling Group’s overall strategy and we will double our business in Poland over the next 18 months, becoming a significant player in one of Europe’s largest markets,” Per Bank said.
“We were looking forward to the approval of the transaction and the beginning of this historic process of transforming the acquired stores into new, modern Netto 3.0 stores, as well as implementing new colleagues from Tesco to service them,” says Janusz Stroka, Netto Polska president. Now the real work begins for us,” he adds.
Tesco stores will change their signboard, décor, and offer
All Tesco supermarkets and compact hypermarkets that will undergo transformation will function in line with the Netto 3.0 concept implemented by the discount chain in recent years.
“In an ambitious move, wherever possible, the staff of the new Netto stores will be former Tesco employees. Along with the transformation of the acquired Tesco stores into the Netto 3.0 format, their employees will undergo a training program that will prepare them to work according to the standards applicable in their new workplaces,” Netto said in a communiqué.
Thanks to the acquisition of over 300 Tesco stores Netto will reach almost 700 outlets in Poland, bringing it much closer to Lidl.