The Reitan family is considering listing life’s work – E24

– We have prepared for this our entire lives, and we feel that a company has a lot to deal with. When we now have the power to bring all business activities together, we should be ready for something even bigger, Ole Robert Reitan tells E24 about stock market assessments.

Starting in January 2021, the Reitan Group will change its name to “Reitan” and the group will simplify the structure into three clear business areas: Commerce, Real Estate and Capital.

Thus, the Uno-X Energi and Reitan Convenience business areas disappear in the “Commerce” category.

– Why is this happening right now, does the timing matter?

– The moment is right for us and for the company, says Reitan and continues:

– We must explore the possibility of using the experience we have internally even better and potentially using it in markets where we are not present, says Ole Robert, who will be the head of the commercial business.

The company is best known in Norway for the Rema 1000 supermarket chain, but the Reitan family has built a strong portfolio of trading companies such as Narvesen, Uno-X, Pressbyån in Sweden, in addition to large positions in real estate and securities.

By the way, only the commercial business is considered to be listed on the stock exchange, and not before 2021. The commercial business has a total of 3,753 outlets in seven countries.

– Believe in sparse ownership

Reitan is reserved about a possible list. It’s clear that the family will retain a majority stake in the company, but it’s too early to say how much capital the company will raise, how far in the process Reitangruppen has come, or how far it has already been on the market and welded the mood.

– We have to go back to all that, he says.

Odd Reitan has said several times that a public listing may be a possibility, but never more concrete than now. The self-proclaimed colonial mayor says in a statement that he believes in getting more owners than family in the group.

– I believe in scattered property. More people should own more. If this happens, we will have a space for co-ownership, which I hope our employees, merchants and customers will join, he says – a message Ole Robert also supports.

Earlier, Odd Reitan said that the wealth tax has been a hindrance to listing on the stock market.

– Has something changed?

“We must do the right thing for the company, so it must be our basis for decision,” says Ole Robert.

Giant Stock Market Potential

Reitangruppen is Norway’s ninth largest group in terms of turnover and had sales of NOK 96.9 billion in 2019, if franchises are included.

Thus, the trading giant had become one of the largest companies on the Oslo Stock Exchange.

This is not the first time the Reitan family has gone public. Reitan Narvesen was included in the list in 2000, but was removed after only one year.

– We learned a lot at that time and we were probably too small and immature, but now we are much stronger and more mature for something like that, says Reitan.

The biggest growth opportunities outside of Norway

Reitan, who has withdrawn somewhat from the public in recent years and focused on the business activities of the entire group, says the company is now entering a new phase.

– It is a company that has developed over 70 years, and that has grown enormously since the last time we went public, so the process we are in now feels natural.

– Where are the greatest opportunities for growth?

– It is probably outside the borders of Norway where the growth opportunities are greatest. After all, we are an international company with half of our jobs located outside of Norway. We need to make sure that those of us sitting in Oslo don’t look at our navels too much again, Reitan says, but adds that a possible listing on the stock exchange can also give power to change the dynamics in the Norwegian grocery industry as well:

– But now we are the smallest of the three big food groups in Norway, you have to be able to do something about it.

He believes that it would have been healthy if the Norwegian grocery industry through a public listing had become more transparent.

– In the commercial business, I think that many of us would have benefited from developing a slightly better angle of vision and analyzing the concepts, so we can start with the ripe fruit.

The Reitan family continues at the top

Despite a restructuring and possible listing, Ole Robert, Odd and Magnus Reitan will continue in their senior positions, with Reitan Eiendom remaining under the leadership of Ingolv Høyland.

– Our life is in this company, says Ole Robert Reitan that the changes do not affect the management of the company.