The Competition and Markets Authority has approved the Co-op’s takeover of Nisa Retail, saying it does not give rise to competition concerns. The deal is expected to be completed by 8th May.
More than 75 per cent of members of Nisa, the delivered wholesaler and convenience retail specialist, have given their backing to a £137.5m takeover by the Co-op.
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 merger will therefore not be referred for an in-depth investigation.”
Jo Whitfield, Chief Executive Officer, Co-op Retail, 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 deal is another step in the shake-up of the wholesale market, following Tesco’s takeover of Booker, the closure of Palmer & Harvey, and the sale of Conviviality’s wholesale business to C&C.