Axfood: SCA approves merger between and Mathem

Stockholm / SE. (axf) Sweden’s Axfood AB announces that the SCA Swedish Competition Authority approved the previously reported Mathem’s takeover of, in connection with which Axfood will become the second largest owner in Mathem since the divestment of will take place in exchange for shares in Mathem. Merging the companies will create synergies and economies of scale, providing improved opportunities to develop a strong offering in pure-play online retail with home delivery.

«This is a transaction that is good and logical in many ways, and we are pleased that the Swedish Competition Authority has given its approval now. Mathem is currently the largest company in the segment for pure-play online retail with home delivery, and is a strong and innovative pure-play online retail operator with a prominent sustainability profile. Through the merger, we are creating the prerequisites for collaboration and synergies, entailing a more competitive customer offering. The long-term delivery and cooperation agreement between Dagab and Mathem will further strengthen the offering to consumers,» says Klas Balkow, President and CEO of Axfood.

On 14 December, it was announced that Axfood, as part of a strategic partnership, had entered into an agreement to divest the operations of to Mathem in exchange for newly issued shares in Mathem. At the same time, Axfood’s subsidiary Dagab signed a seven-year delivery and cooperation agreement with Mathem concerning purchasing, assortment and logistics. The warehouse and transport business that Dagab currently provides to is not included in the deal.

Completion of the transaction was subject to approval by the Swedish Competition Authority, which announced today that its review has been completed and that it has approved the deal. The transaction will be concluded on 1 March this year.

The purchase consideration amounts to SEK 688 m on a cash and debt-free basis. Through this transaction, Axfood will become the second largest owner of Mathem with an ownership share amounting to 16.5 percent. Axfood will be represented on Mathem’s Board of Directors by one director.

«In parallel with being the second largest owner of the largest online pure-play home delivery operator, we will continue to invest in our omnichannel offering in Willys and Hemköp. Customers should be presented with the same offering, regardless of whether they make purchases in physical stores or online through home delivery or store pick-up,» says Klas Balkow.