According to Coop representative Rainer Rohtla, Coop and Prisma are currently working to finalize the transaction.

"We have signed a purchase agreement under which Coop will acquire Prisma Peremarket as a company, and based on that agreement, the Competition Authority has approved the completion of the transaction. Right now, all the preparations needed to complete the deal are underway, which means a great deal of work internally for both Coop and Prisma. The acquisition will take place on August 31, less than a month from now, after which Coop Eesti Keskühistu will become the sole owner of Prisma Peremarket," Rohtla said.

He added that during the second or third week of September, the current Prisma stores will be transferred to various Coop regional cooperatives, which will begin operating them.

On product selection, Rohtla said the goal is to preserve the assortment customers are accustomed to, though doing so will require a major effort from the company.

"Prisma's product range is very distinctive. It includes many Scandinavian products as well as many Coop private-label products that are not currently sold in Coop stores. This is one of the areas creating a significant workload for us. To keep Prisma's entire product range available in stores as it is today, we need to expand our logistics and supply chain capabilities. Nothing will be removed, but we will also add many of the products Coop customers already love. The rollout of Prisma's best-selling and most popular products to other Coop stores will take place during the first half of next year. By July next year, Prisma's most popular products will be available in Coop stores across Estonia," Rohtla said.

Rohtla also said there is no reason to fear price increases, citing current market conditions.

"Even if we wanted to raise prices, given how intense competition is in Estonia's retail sector, how much food prices have already increased in recent years and the fact that consumers' purchasing power and confidence remain low, there is simply no room in the market for price increases," he said.

One of the aims of the acquisition is to increase Coop's market share.

"Our market share in Tallinn is around 5 percent, compared with 23 percent nationwide. Now our market share in Tallinn will increase to 17 percent," Rohtla said.

Rohtla again declined to disclose the purchase price for Prisma's stores or say how quickly Coop expects to recoup its investment.

"Time will tell. We are very optimistic, knowing what we plan to do to make the investment pay off, but that's certainly not something I want to disclose today," he said.

Analyst: Prisma's exit will have no effect on food prices

Economist Raul Eamets agreed that a larger market share for one retail chain does not necessarily lead to higher prices.

"There is actually fairly strong competition in the grocery market, particularly since Lidl entered Estonia a few years ago. I don't think Prisma's transition to the Coop brand will have any significant impact on prices. If you look at the profit margins of the major retail chains — how much profit they make as a share of sales — we're talking about just a few percent. Simply having a larger market share doesn't suddenly give a retailer the ability to manipulate prices," Eamets said.

He added that food prices in Estonia are driven primarily by global factors.

"Price levels are influenced less by domestic competition than by food producers' prices and, above all, global market prices. Those are what determine food prices. We are highly dependent on imported food ingredients and finished products. According to the latest figures, prices for imported goods increased by 7 percent," the economist said.

"The reality is that Estonia cannot fully feed itself, so we depend on what happens outside the country. Unfortunately, there is little we can do to influence that," he added.

On April 7, Coop Eesti Keskühistu and Finnish retail group SOK signed a purchase agreement under which Coop will acquire AS Prisma Peremarket and its 13 stores in Estonia, located in Tallinn and Harju County, Tartu, Narva and Rapla. The parties will also begin a strategic partnership to bring Finnish food and consumer goods to more than 300 Coop stores across Estonia.

The transaction does not include the Prisma brand or the Sokos Hotel Viru. The parties have not disclosed the value of the deal.

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