ASDA Buys Netto for £778 Million
27 May 2010
Asda has purchased the Netto business in the UK for £778 million.
The Netto business comprises 193 stores, which will be converted to small Asda stores by next Summer, subject to approval from the Office of Fair Trading. Typically the Netto stores are around 8,000 sq ft in size, and the number of SKUs will be increased from 1,800 to 10,000.
ACS Chief Executive James Lowman said: “The UK already has one of the most concentrated grocery markets in the world, with four companies controlling three-quarters of the market. That leads to serious concerns about consumer choice and retail diversity, and Asda’s acquisition of Netto continues the dangerous trend of consolidation.
“The OFT needs to look into this acquisition and to address choice and competition in each local market and at a national level.”