Joint retail company

January 7, 1999, 00:00 CET

A deal on joint ownership and operation of 1,500 Scandinavian service stations has been signed by Statoil and two other companies

The new company to be established under this frame agreement will be owned 50 per cent by Statoil and 50 per cent by the Norwegian-Swedish ICA/Hakon retailing group.

With a total capitalisation of roughly NOK 7.5 billion, the operation will have roughly NOK 3 billion in shareholders' equity.

This company will offer groceries, fast food, motor fuels and car service. The frame agreement also embraces Statoil's new Mango convenience store model.

"With the ICA/Hakon group's expertise on the supermarket side and our knowledge of fuels and service, we'll be a strong team in the new service segment," comments Sten Åke Forsberg, senior vice president for Marketing in Statoil. "This agreement opens opportunities for all concerned."

A final agreement will mean the transfer of the 451 employees in Statoil's retailing unit to the new company.

Total sales by the 1,500 Scandinavian stations in 1997 came to some NOK 25 billion, including about NOK 7.5 billion for non-fuel products.

The ICA/Hakon group comprises ICA Handlarnas AB in Sweden and Norway's Hakon Gruppen AS. Plans call for these two companies to be merged under a common parent called ICA AB before the end of February.