Kesko Food plans acquisition of Neste Marketing's holding in Pikoil

03/10/05 Kesko Food Ltd and Neste Marketing Ltd have signed an agreement under which Kesko Food acquires Neste Marketing's 50 percent holding in Pikoil Oy, a company operating in the liquid fuels and grocery retail market. Pikoil Oy was established in 2003 and the parties have owned it on a fifty-fifty basis. As a result of the deal, Kesko Food becomes the sole owner. The deal is subject to the approval of the Finnish Competition Authority and the fulfilment of other precedent conditions.

The framework of Pikoil's operations consists of K-pikkolo stores, Neste Motorest service stations with restaurant and Neste K-pikkolo service stations with grocery store. The company operates at over 130 business locations and employs about 1,400 persons. The arrangement is not estimated to have any significant impact on the personnel.

The deal is in line with the Kesko Food strategy to strengthen the company's position in the service station market. Plans have been made to expand and develop Pikoil's operations further. Cooperation with Neste Marketing in fuel distribution will continue on current terms. According to the agreement, Neste will also continue as a Plussa partner, and the cards commonly accepted for payment in the Neste chains will continue to be accepted in the Pikoil outlets also after the deal.