Nisa Retail members have voted ‘significantly in favour’ of The Co-operative group’s bid to buy the business for £137.5 million.
A statement on the Co-op’s website said that ‘at the Court Meeting of the members held at Elland Road, Leeds [on Monday], members voted 75.79% in favour and 24.21% against the Co-op’s offer.’
The offer is still subject to approval from the Competition and Markets Authority, which is expected around the end of March next year.
‘Stronger Member-Led Presence’
“We are delighted that Nisa members have supported our offer and our ambition to create a stronger member-led presence within the UK convenience sector,” said Jo Whitfield, CEO Co-op Food.
“Together Co-op and Nisa can go from strength to strength, serving customers up and down the country and creating real value for them in their communities. Our offer remains conditional on CMA approval and we remain in discussions with them.”
As part of the offer, Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years. In addition, the Co-op confirmed that members ‘will still enjoy the independence to operate their stores as they wish, and will be able to remain part of a member-owned organisation within the growing UK convenience retail sector’.
‘Best Interests’
“We as a Board are firm in our belief that a combination with the Co-op is in the best interests of Nisa’s members,” said Nisa chairman Peter Hartley. “The convenience store environment is changing rapidly, and is unrecognizable from that which existed when Nisa was founded more than 40 years ago. Co-op will add buying power and product range to our offering, while respecting our culture of independence.”
In October 2017, Nisa reported total sales in the first half of its financial year were up 12.4% to £728 million.
Commenting on the news, Catherine Shuttleworth, CEO at shopper marketing agency Savvy said, “As the green light is given this morning for the Tesco Booker merger and Nisa members overwhelmingly vote through the Coop deal it looks like we are set for revolution in the convenience market - it will be an interesting few weeks as others in the market may now choose to show their hand.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
