Way clear for Co-op to take over Nisa business
THE final hurdle in The Co-op’s acquisition of Nisa has been cleared after a Competition and Markets Authority investigation found no concerns over the deal.
As part of its investigation, the CMA assessed how The Co-op’s purchase might affect competition, as Nisa currently supplies over 4.000 retailers in the UK, but concluded there was no cause for concern.
Sheldon Mills, senior director of mergers at the CMA, said: “After careful consideration, we’ve found that there is sufficient competition in both the wholesale and retail sectors to ensure that shoppers are not worse off.”
The CMA’s ruling follows on from its decision to allow a merger between Tesco and Booker, the wholesaler behind Premier, Londis and Family Shopper.
Commenting on gaining CMA approval, Co-op Retail chief executive Jo Whitfield said: “We’re delighted with the CMA decision and are really excited about sharing our plans for the future once we gain Court sanction.
“Our strategy is to get closer to communities and our new business will create a strong product offer and improved prices for Nisa members that will engage their shoppers across the UK.”
The Co-op acquisition is a major milestone in the history of Nisa, founded in 1977 and operated as retailer owned mutual company.
Nisa members elected to sell their shares to The Co-op last November in a members vote, with the deal achieving a 75% majority.
The vote followed a tour of the country made by teams from Nisa and The Co-op promoting the benefits of the deal.
Now that The CMA has given the green light, Nisa shareholders can expect an equal initial payout followed by a deferred share payment payable over three years as well as additional rebates payable over four years.
As part of the deal, The Co-op takes on Nisa’s existing debt of around £105m.
