Creation of Nordic coop cleared - Coop Norden - Brief Article

After prolonged and heated debate, reluctant Norwegian owner representatives of coop consumer group Coop Norge last week voted to merge its operations with FDB of Denmark and Sweden's KF to create Coop Norden.

Coop Norden will be the second largest food retail group in the Nordic region with combined sales of Skr99.7bn (10.7bn [European Dollar]), after the ICA Ahold group, which last year had sales of Skr131.6bn.

It was with only an eight vote margin that the merger was cleared as 75 voted in favour of a merger and 25 voted against. A two-third majority was required.

In Sweden, on the other hand, the merger had earlier been approved unanimously and in Denmark with a vast majority of 278 "yea" and 11 votes against.

"The decision to create Coop Norden will give us better opportunities through efficiency and innovative development create value for our members in the consumer coops," a joint statement from manging directors Roland Svensson of KF, Jorgen Clausen, FDB, and Svein Skorstad, Coop Norge, read.

Coop Norden will claim a 22.3% market share of Skr446bn-worth Nordic food retail market and employ a staff of 64 000 people at 3 000 outlets. An interim board will be appointed pending an extra general meeting in October. Its first task will be to appoint a new management, that will commence work in August.

KF will hold 42% stake in Coop Norden, while FDB will get 38% and Coop Norge 20%.