Dixons crosses the Finnish line

Retail group buy second largest electrical retailer in Finland

Dixons Stores Group international (DSGi) has acquired the number two electrical retailer in Finland for €49m.

Markantalo has a 26-store portfolio and together with Gigantti, DSGi's existing operations in Finland, the transaction will create a 40-strong store chain in addition to franchise operations.

DSGi said in a statement that the acquisition "will make DSGi the market leader in Finland".

Completion of the acquisition is expected to take place on 1 March 2006.

In November, DSGi reported that total sales from its UK retail operations were down four per cent for the 28 weeks to 12 November 2005, while in its international retail businesses, total sales were up 24 per cent.

At the time, John Clare, DSGi chief executive, said: "Our international operations in aggregate continue to perform well with notable performances in our established businesses in the Nordic countries, Greece, Italy and Ireland. Trading conditions in the UK remain difficult. There has been no further significant deterioration in our overall trading in the UK during the period, but equally, no clear indication yet of any recovery in our markets."

DSGi is due to issue its interim results and Christmas trading statement on 18 January.

In August, DSGi sent shockwaves through the channel when it acquired VAR Equanet for an undisclosed amount.

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