Ikea sells key subsidiaries for 5.2b euros in major overhaul

Stockholm

THE Ikea Group said on Wednesday that it has sold key subsidiaries for 5.2 billion euros (S$7.9 billion) as part of an overhaul to help the furniture retailer react to new competition and shifts in consumer preferences away from its vast out-of-town stores.

The group, which operates most Ikea stores, sold subsidiaries that manage its supply chain and design, purchase and manufacture all Ikea furniture to Inter Ikea Holding BV, a company based in Delft in the Netherlands, which owns the Ikea brand.