Mekonomen's major venture in Norway takes off

Mekonomen's major venture in Norway takes off

- The acquisition of BilXtra has been approved by the Norwegian
Competition Authority.

Mekonomen's acquisition of  Sørensen og Balchen/BilXtra was approved
today by the Norwegian Competition Authority. Following the acquisition,
Mekonomen has approximately 6 per cent of the Norwegian total market,
which is valued at SEK 27 billion annually. However, the two chains,
Mekonomen and BilXtra, will continue to operate as full competitors.

The spare-parts chain BilXtra is operated by Sørensen og Balchen and
following this acquisition, Mekonomen will expand its network in Norway
by 73 stores and more than 200 affiliated workshops.

“The acquisition of Sørensen og Balchen is strategically important to
Mekonomen and will provide us with a significantly stronger position in
Norway. The Norwegian market is still dominated by brand dependent
dealerships and Mekonomen is working hard to change that,” says Håkan
Lundstedt, President and CEO of Mekonomen. 

Although Mekonomen will now be the owner, BilXtra will continue to be
operated as a separate unit. BilXtra and Mekonomen are both strong
brands and the competition between the two chains will contribute to
more rapid changes in the Norwegian markets. From brand-based dominance
to a market that focuses on the customer and a high level of service.

“There is major growth potential for both chains and from 2012, we
anticipate that annual synergies from costs, logistics and purchasing
will amount to SEK 40 M. This will provide scope for a continued strong
development of our customer offerings,” says Håkan Lundstedt.  

Sørensen og Balchen is a well-known family company and the sales
forecast for 2011 totals approximately NOK 660 M. 

On approval at the Extraordinary General Meeting today the closing will
take place not later than 11 March 2011. 

For more information:
Håkan Lundstedt, President and CEO, Mekonomen AB, Tel +46 8 464 00 00
Gunilla Spongh, CFO, Mekonomen AB, Tel +46 8 464 00 00