One of Scandinavia's largest retail groups, Reitan Group is to acquire the region's largest mobile service provider Sense Communications following agreement by the respective boards on the terms of a final cash offer.
Reitan Group believes it can strengthen Sense Communications' existing share of the Scandinavian mobile phone market, principally by using Reitan's 2,109 stores as increased distribution opportunities and greater branding focus. In addition, Reitan's channels of distribution are expected to reduce customer acquisition costs, while its existing pre-paid services will now be complemented by a post-paid offering.
Commenting on the offer, Magnus Reitan, Chief Financial Officer of Reitan Group, said, "Sense Communications is an established business with a large and loyal customer base. Reitan Group is confident that its existing infrastructure will provide an ideal opportunity to further expand the customer base and grow into new markets. Reitan believes that the deal offers a good commercial opportunity both for Sense Communications shareholders and the Reitan Group. After completion of the acquisition Reitan's mobile customer base will be in excess of 235,000, representing nearly 10% of the Norwegian market."