CMA gives green light for Co-op's takeover of Nisa
The Competition and Markets Authority has approved the Co-op’s proposed acquisition of member owned retailing and wholesaling group Nisa Retail.
The Co-op has offered to buy 100% of the shares in Nisa for up to £137.5 million and to pay associated deal costs of up to £5.5 million. With Nisa members having voted in favour of the proposal in November last year, the deal is expected to complete on or around 8 May.
The CMA said the proposed merger does not give rise to competition concerns as Nisa members will still be able to set their own prices and decide which products to stock so the merged business will not be able to directly determine how the two organisations compete.
It also looked at whether the merged company could raise prices or reduce service quality for retail or wholesale customers and found that existing retail and wholesale competition made this “unlikely”.
Jo Whitfield, chief executive of 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.”
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