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STOCKHOLM (Reuters) – IKEA store owner Ingka Group said on Thursday it had agreed to buy a 49% stake in financial services partner Ikano Bank as part of a push to boost its service offerings.
The consumer bank is owned by the Ikano Group, which spun off from IKEA in 1988 to the sons of the furniture brand’s founder, Ingvar Kamprad.
It provides financial services to IKEA buyers in eight markets, as well as other consumer banking services.
Full financial terms of the deal were not disclosed. Ingka Group said it was acquiring the stake through the issuance of new shares by Ikano Bank, with the option to acquire the remaining shares at a later date.
“This is a decisive step towards financial services, a critical part of Ingka Group’s journey to help make IKEA more affordable, accessible and sustainable,” he said in an emailed statement.
Ingka’s partial ownership of the bank will “maximize the potential” of the existing relationship it has with Ikano Bank, he said, adding that its digital financial services will be available to customers online or in store.
The deal is subject to regulatory approvals.
IKEA, which operates through a franchise system with Ingka Group, the main franchisee of the Inter IKEA brand owner, is controlled by independent foundations.
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