CMA clears Co-op’s £143 million acquisition of Nisa in the UK
Category: #retail  By Dhananjay Punekar  Date: 2018-04-24
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CMA clears Co-op’s £143 million acquisition of Nisa in the UK

The UK based competition regulator CMA (Competition and Markets Authority) has provided a green signal to Co-op’s takeover bid for Nisa, a renowned groceries wholesaler firm based in the UK. As per authentic sources, the purchase deal seems to worth approximately £143 million.

Incidentally, in November last year, a few of Nisa’s shareholders, who had opposed the agreement, had threatened to block the pact due to their concerns over the terms & conditions of the deal. However, nearly 75.8 percent of the investors have now approved the deal and the only requirement Co-op awaited was the final approval from the UK regulators before going ahead with the acquisition formalities and then closing the deal.

In October last year, with Sainsbury backing out from the purchase of Nisa, Co-op had put forward the bid to acquire the UK based group of retailers & wholesalers. Next month, the majority of Nisa members had voted in favor of the company’s sale to Co-op. As per the key officials of CMA, the competition watchdog has thoroughly scrutinized the impact of the deal on the business competition, as Nisa operates nearly more than four thousand convenience shops & small supermarkets in the UK. But, before announcing its decision, it took into consideration that these stores will be free to set the product prices and devise product stocking plans post the firm’s merger with Co-op.

After the comprehensive initial examination of the deal, the competition authorities in the UK seem to have approved the same without referring it to an in-depth trial, as they did not find it necessary. CMA believes that there are sufficient choices for UK’s citizens regarding both Nisa and Co-op run retail & wholesale stores.

Co-op incidentally plans to nearly double the number of stores it supplies post the official closure of the deal.



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Dhananjay Punekar

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Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

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