Agreement with Cerealia approved
Orkla Foods and Cerealia have obtained all official approvals related to the purchase of the marzipan and bakery ingredients supplier KåKå from the Swedish company Cerealia and the sale of the Norwegian flour milling business Regal Mølle to Cerealia. This will increase Orkla Foods' annual operating income by about NOK 600 million, while operating profit in short term will decline slightly. As earlier stated Orkla Foods will receive a cash payment of NOK 150 million as part of the deal and Orkla will book an accounting gain in the order of NOK 100 million. The two parties intend to let the transaction have effect from July 1, 1999.