Asda in UK Netto buy-out

The transaction, if approved by the OFT, will enable Asda to convert Netto’s UK locations into Asda stores and integrate them into its new supermarkets’ division for units smaller than 25,000sq ft.

Asda said it was also set to employ up to twice as many staff in each of the converted shops, and UK Netto stores will be expected to trade under an Asda frontage by summer 2011.

Andy Clarke, Asda chief executive, said: “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.”

Netto was established in the UK in 1990 and operates 193 stores at an average 8000sq ft. It is described as the market leader in Denmark and among the fastest-growing discounters in Germany, Poland and Sweden. The company now wants to focus on growth in mainland Europe.

Netto MD Claus Juel-Jensen said: “As a major league player, Asda is the ideal purchaser of our UK business. 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.”

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