Axfood AB (publ) (OM:AXFO) reached an agreement to acquire remaining 90.1% stake in City Gross Sverige AB from Bergendahl Food Holding Ab for SEK 2 billion on June 11, 2024. The consideration amounts to SEK 2 billion on a cash and debt free basis, and the acquisition will be financed through a combination of existing cash and credit facilities. Axfood estimates transaction costs to amount to approximately SEK 25 million. Upon completion, Axfood AB (publ) will own 100% stake in City Gross Sverige AB. For the period ending April 30, 2024, City Gross Sverige AB reported net sales of SEK 9.1 billion and operating loss of approximately SEK 130 million.

The transaction is subject to approval by the Swedish Competition Authority and the European Commission. The expected completion of the transaction is September 1, 2024.