The transaction still requires approval from the Estonian Competition Authority and is expected to be completed in 2026, the companies said. The Central Finnish Cooperative Society (SOK) and Coop Eesti Keskühistu (Coop Estonia) have agreed not to disclose the terms of the deal.

Once the transaction is approved, the Prisma Peremarket stores in Estonia will become Coop stores and 700 Prisma employees will transfer to Coop.

Until then, all Prisma Estonia stores will continue operating as usual and there will be no significant changes to product assortments, the parties confirmed.

Ilkka Alarotu, chairman of the management board of Prisma Peremarket, said at a press conference that the Prisma brand is not part of the transaction. However, SOK and Coop Estonia will continue their partnership to ensure that SOK products remain available in Estonia.

"We plan to begin extensive cooperation between SOK and Coop Eesti Keskühistu," Alarotu said. "This will allow Coop to offer a selection of SOK vegetables and consumer goods in stores across Estonia. This also includes allergy-friendly products and private-label goods."

Rainer Rohtla, chairman of the management board of Coop Estonia, said the cooperation with SOK will also give Estonian producers an opportunity to enter the Scandinavian market. He confirmed that Finnish products currently sold only in Prisma stores in Estonia — such as low-fat or gluten-free items — will not disappear.

"We will expand the assortment of these goods to all other Coop stores as well," Rohtla said.

If the Estonian Competition Authority approves the transaction, Coop also plans to increase the share of Estonian-made products in the current Prisma stores.

Fate of Prima online shop and round-the-clock stores yet unknown

The size of Prisma Peremarket supermarkets is similar to Coop's Maksimarket stores, which is why they fit well with Coop's concept, according to Rohtla. The retail chain plans to retain hypermarkets — stores offering a very wide range of clothing, industrial goods and other products — and the cooperation agreement with SOK also covers the continued sourcing of non-food goods sold in Prisma stores.

Rohtla said he could not yet provide specific details about the future of Prisma's online store or its overnight stores. Teemu Kilpiä, Prisma Estonia's country manager, noted that from their perspective, the overnight stores have proven successful and will continue operating as usual until the transaction is completed, as will the online store.

Coop employs nearly 6,000 people and since the current Prisma stores will continue operating as retail locations, jobs will be secured for all those working in the stores on a daily basis, Rohtla said.

There may be some overlap in office roles, but at the same time, SOK will become a major supplier in Finland and operating hypermarkets is a new area for Coop that will require building additional expertise. For that reason, Rohtla said it is too early to specify exactly where any overlapping positions may arise.

The deal does not affect Sokos Hotel Viru, which will continue operating as normal.

Coop is Estonia's largest grocery retail chain, with a network of more than 300 stores across the country.

Coop looking to expand in Tallinn

Explaining the acquisition, Coop CEO Rainer Rohtla said Coop's market share in Tallinn has been relatively low compared with competitors as the company has historically focused on other regions of Estonia. However, nine out of 13 Prisma stores are located in the capital.

"We have been looking for a suitable opportunity for some time to increase our market share in Tallinn. The acquisition of Prisma Peremarket gives us the opportunity to significantly expand our market share and make Coop more accessible to residents of the capital," Rohtla said.

He added that Coop's current market share in Tallinn is about 5 percent and will rise to over 15 percent after the transaction, but there is no reason to fear that competition in Estonia's retail market will weaken as a result.

"Our market share will remain clearly below a monopoly level, at around a couple of dozen percent both in Tallinn and in other regions," said Rainer Rohtla. "It is also important to note that while Coop is the contractual partner to SOK, it will not operate the stores — once the deal is approved by the Estonian Competition Authority, the Prisma Peremarket stores will be transferred under the management of local cooperatives. The central cooperative itself does not operate any stores."

Nine Prisma stores in Tallinn will come under the management of the Harju Consumers Cooperative.

Prisma Peremarket has operated in Estonia since 2000. The chain has stores in Tallinn and Harju County, as well as in Tartu, Narva and Rapla. Prisma Peremarket is part of the Finnish retail group S-Group.

Coop is Estonia's largest and oldest grocery and everyday goods retail chain, consisting of 18 local consumer cooperatives and a central cooperative coordinating their activities. The group operates 320 stores across Estonia.

The article was updated to add details and comments.

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