Sainsbury's puts NISA talks on hold
Talks between Sainsbury’s and grocery wholesale group NISA have stalled over fears of intervention by UK competition authorities, media reported on Tuesday.
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The exclusive talks ended late last week after the Competition and Markets Authority expressed serious concerns about a similar, but much larger, merger between Tesco and the grocery wholesaler Booker, the Guardian reported.
“Sainsbury’s has decided to pause discussions with Nisa until it better understands how the CMA would review any deal,” the newspaper cited an unnamed source as saying.
Nisa also indicated to its owner members on Monday that a third party, believed to be the Co-op, had renewed interest in the company.
Nisa’s chairman, Peter Hartley, wrote to the group’s owner members on Monday saying Sainsbury’s was still interested in potentially making an offer for the company but did not feel ready to do so until there was “greater clarity over the evolving regulatory and competition considerations”.
“Another party that had previously submitted a bid for your company has reaffirmed its interest in making an offer for Nisa and we are discussing this with them.
“Our sector continues to change and evolve at pace, many of these changes will shape the convenience sector for the next decade and beyond. The board of Nisa continues to review any serious incoming queries and offers in the best interest of its members.”
The CMA last month referred the Tesco deal for an in-depth competition investigation.
Its initial findings said the £3.7bn merger could potentially damage competition in 350 neighbourhoods as it suggested there was no clear distinction between chains owned directly by Tesco and the Budgens, Londis and Premier outlets it would become a major supplier to after the takeover of Booker.