Makro still struggling says Booker
BOOKER, the listed wholesale cash & carry and logistics group, says Makro – the North West business it bought this summer- is continuing to have a tough time.
Northamptonshire-based Booker, which paid Germany’s Metro Group £140m in a cash and shares deal for Eccles-based Makro , is still waiting for clearance from competition authorities before completing the deal.
In a trading update it said: “We acquired Makro on July 4th. Makro has been struggling for the past few years and its performance in the past 10 weeks has continued to be challenging.”
Booker said until the Office of Fair Trading completes a competition review process, it cannot integrate Makro into the group as it has to he held as a separate entity.
It added: “The senior management of Booker and Makro are confident that, by working together, we will be able to improve choice, prices and service to the caterers, retailers and small and medium sized enterprises that we serve.
“We will be able to offer foods and non foods via the internet, delivery and cash and carry. This will help Booker Group in its ambition to become the UK’s leading wholesaler.”
Booker said total sales (excluding Makro) in the 12 weeks to 14 September 2012 rose by 4.3% on last year.
Chief executive Charles Wilson said: “We are confident that once we have clearance from the competition authorities, Booker and Makro will be able to improve choice, prices and service for the caterers, retailers and small business in the UK. Makro will prove a good addition to the Booker Group.”
