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Economy Economy: Expect More Acquisitions

This morning it was revealed that Kappahl's offer of Mellby Gård is now formally in port. Frida Bratt, an economist at Nordnet, believes we will see more such purchases in the future.

Mellby Gård explains the offer for Kappahl unconditionally and will now work to get Kappahl removed from the Stockholm Stock Exchange. Frida Bratt says Kappahl will not be the last company to be bought on the grounds that restructuring must take place in an unlisted environment.

"I think it's right for Kappahl, who has a second chance to try to increase e-commerce and get in-store sales. If you can reverse Kappahl, savers will surely miss the trip, but I think the offer was reasonable and it was right. savers who accepted. This is especially if we take into account the risk of further price drops, "she writes in a comment.

She believes more companies will learn to end up in the same situation if Sweden goes into recession, especially in retail.

One company that could be a potential takeover candidate is Mekonomen, she says. Although the companies have come a long way in their restructuring, the company has abandoned the dividend from the fourth quarter of last year, which could have been a way to cut the price if the big owner LKQ wants to buy the company.

Given the weak Swedish krona, Frida Bratt believes it is also surprising that there are no more foreign investors bidding for Swedish companies.

"I think that both industrial and real estate companies could be bought. But gaming operators, who are struggling with stock price pressure since the new regulation, are likely to be candidates for acquisitions because there is room for consolidation. Even Attendo, which is very rigid since problems in uncovered Finnish operations could be candidates for the takeover, "she writes.

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