Takeover talks at Nisa stall as Sainsbury’s steps back
A proposed £130m takeover bid for Scunthorpe-based Nisa Retail by supermarket Sainsbury’s has stalled.
It is thought that the bid is on hold as Sainsbury’s awaits a verdict from the competition watchdog over rival Tesco’s bid for Booker.
The £3.7bn bid dwarfs that of Nisa, but would set a precedent for the similar, smaller bid. Concerns have been raised over how far the Competition and Markets Authority is looking into the bid. Its verdict will be returned at the end of October.
Until then, Sainsbury’s has halted talks with the wholesaler and convenience chain. However it will have to move fast, with Co-op said to be circling for Nisa, according to The Telegraph.
The CMA targeted the Booker deal for investigation earlier this year, suggesting that it could damage competition in more than 350 areas.
Tesco may have launched the resurgence of interest in the convenience sector, but other supermarkets are following suit.
Morrisons recently entered a major supply chain deal with convenience franchise chain McColl’s, which will see Safeway-branded products supplied to its network of 1,300 grocery stores.
In another area of the market, Asda is said to be eyeing up a bid for discount retailer B&M, as the traditional Big Four supermarkets look outside their comfort zones to combat the onslaught of the discout retailers Lidl and Aldi.
