Salling Group's takeover of Rimi Baltic approved
The European Commission has approved Salling Group's acquisition of Rimi Baltic's business in Estonia, Lithuania, and Latvia.
In March, Salling Group and the Swedish grocery group ICA Gruppen reached an agreement on a purchase agreement that gives Salling Group full ownership of Rimi – the grocery group with headquarters in Riga.
This is the largest acquisition in Salling Group's almost 120-year history, and it is strategically important for achieving the goals defined in the ASPIRE ’28 strategy, including making significant acquisitions to create an improved and stronger business.
“It is a big day for Salling Group, because now we can seriously start preparing for the integration of Rimi and welcome our new colleagues to the team. Rimi is an iconic company and the second largest player in the Baltic grocery market. The company is steeped in professionalism, which we will leverage in Denmark, Germany, and Poland for the benefit of our customers,” says CEO of Salling Group, Anders Hagh.
“Rimi is financially strong, but we naturally have ambitions for more in Estonia, Lithuania, and Latvia. We will strengthen our market position by creating new and even better shopping experiences, including through new stores in all three countries,” says Anders Hagh.
With ASPIRE ’28, Salling Group has set a goal of total revenue of DKK 100 billion in 2028. This will be achieved by strengthening the core business, making significant acquisitions, and prioritizing innovation through the establishment of an investment fund, Salling Seeds, as well as strengthening the position outside the Danish domestic market.
ICA seemingly happy
“It feels particularly good that we can complete this deal in such a relatively brief time. We are proud of Rimi Baltic's strong development and our shared history of more than 28 years, and we are divesting a strong and healthy company,” argues CEI Nina Jönsson.
The transaction frees up funds, which enables continued investments and allocation of resources to the Swedish operations to strengthen and expand customer offerings in the Swedish market. Something ICA needs because it is losing market share to Axfood.
Rimi Baltic is being divested at a valuation of EUR 1.3 billion. The divested operations contain liabilities, mainly IFRS 16 lease liabilities, of EUR 0.5 billion. Rimi Baltic will be reported as a discontinued operation in ICA Gruppen's interim report for the first four months of 2025, which will be published on June 5.
Rimi has been owned by ICA Gruppen for many years, but now the Swedish grocery group wants to focus on the domestic market in Sweden only. It is hardly an upturn for ICA, rather a recognition that the management of ICA has made many bad choices historically and been weak on internationalization.
International Danes
With the acquisition of Rimi Baltic, Salling Group will be present in six countries with almost 2,100 stores and almost 70,000 colleagues.
Rimi Baltic
Rimi has 314 stores in three countries:
- Rimi Estonia (84)
- Rimi Latvia (140)
- Rimi Lithuania (90)
Chains and services:
- Rimi Hypermarkets (96)
- Rimi Express (20)
- Rimi Super (102)
- Rimi Mini (96)
- Online (33 pick-up locations)
Sources: ICA, Salling, NHH Food.