Sainsbury's shares up as supermarket giant opens talks on Nisa bid

Jay Anderson
June 19, 2017

United Kingdom retailer Sainsbury is said to be close to submitting a formal bid to acquire Nisa, a wholesaler and convenience store group that counts more than 2,500 independently-owned stores around the United Kingdom as members.

Nisa has been working with investment bank Lazard on a sale process and is thought to have received interest from several prospective buyers, including the Co-Op.

Nisa, which is owned by its shopkeeper members, has also reportedly been talking to other retail groups, but Sainsbury's seems to be the preferred option. It is understood that the Sainsbury's bid has been selected by the board over a previous offer by rival the Co-operative Group.

Shares in Sainsbury's were 2.3% higher at 258.1p in morning trading, taking it to the top of the FTSE 100.

The Telegraph reported at the weekend that Nisa could sign an exclusivity agreement with Sainsbury's, with a view to a deal believed to be worth in the region of £130m.

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Sainsbury's is responding following Tesco's move for wholesaler Bookers which operates the Londis and Budgens chains.

Sainsbury's said it does not comment on "market speculation".

What does the Tesco-Booker merger mean for convenience stores?

"As competition in this area continues to intensify, we would expect to see further acquisitions that will help brands to increase available retail space".

Other reports by BadHub

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