Costcutter in talks with Bibby on deal

BIBBY Line Group, the Liverpool-based mini-conglomerate, is in talks to take full control of Yorkshire convenience store retailer Costcutter.

Bibby confirmed a process was under way and that “discussions are continuing” after York-based Costcutter’s executive chairman Colin Graves said at the group’s 25th birthday celebrations a deal was all but done.

“The last 25 years has been something of a rollercoaster ride, and the success of Costcutter has made me tremendously proud. And with Michael Bibby as the new owner, it feels like we are a football team that has been promoted to the Premiership,” he stated.

Mr Graves also told the audience that he and the rest of the Costcutter management team would be staying on after the deal completes.

Bibby, originally a shipping group founded 200 years ago, now has interests ranging from financial services to distribution.

It acquired 51% of Costcutter in 2007 in a deal estimated at around £100m.

Despite Mr Graves’ statement at the dinner in Birmingham on Monday that a deal would be done “within six months”, a spokesman for Bibby would not be drawn on the timescale.

“Bibby Line Group can confirm that discussions are underway regarding Costcutter and are continuing.”

Costcutter has more than 1.500 convenience stores and had sales of £610m in the year to the end of April 2010.