Finnish food retailer Kesko Oyj's retail company K-Caara plans to acquire car dealer LänsiAuto Oy's Volkswagen AG, Audi AG and SEAT businesses in the cities of Kotka, Kouvola and Lappeenranta, Finland.

Kesko announced the transaction on Jan. 2, though financial terms were not disclosed. The deal, which is subject to approval by the Finnish Competition and Consumer Authority, is expected to be completed in the first quarter of 2019.

K-Caara aims to grow its market share in auto retail by expanding its market in Finland, in cooperation with the Volkswagen Group's brands. Meanwhile, car retailer LänsiAuto is seeking to strengthen its value chain position by expanding into leasing, renting and importing.

The pro-forma sales of the combined businesses totaled about €67 million in 2017, Kesko said. Employees will be transferred to K-Caara without leasing new premises or infrastructure.