UK retailer Sainsbury's has halted talks over its potential £130 million takeover of convenience chain Nisa, according to the Financial Times.
In June, it was reported that the supermarket chain was close to submitting a formal bid to acquire Nisa, which was seen as a counter to Tesco’s £3.7 billion acquisition of Booker.
However, the UK's Competition and Markets Authority (CMA) is currently investigating the proposed Tesco-Booker merger, creating cause for concern at Sainsbury's.
A person familiar with management at Sainsbury's told the Financial Times that the company had “decided to pause discussions with Nisa until it better understands how the CMA would review any deal”.
Retail Competition
The CMA is currently conducting an in-depth second-phase investigation of Tesco's deal with wholesale operator Booker, to asses 'whether the deal could reduce competition and choice for shoppers and other customers'. A decision is expected before the end of 2017.
This is not the only merger taking place in the UK retail market. Earlier this month, discount retailer B&M acquired convenience-store chain Heron Food Group.
There are also reports that the Co-operative could be interested in making an offer for Nisa.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
