UK: Co-op Completes Somerfield Acquisition
|
|
|
|
Thursday, 17 July 2008 |
|
The Co-Operative Group has completed its takeover of Somerfield that
will see the group increase its market share and challenge the ‘big
four’ retailers.
The £1.75 billion buy-out was completed today (Wednesday, July 16)
taking the Co-Ops overall market share over 8 per cent, just behind
supermarket chain Morrisons. The combined food business will operate
more than 3,000 grocery stores and generate net sales of about £8
billion.
Peter Marks, chief executive of The Co-operative Group said: “This is
good news for consumers and for competition in the grocery market,
where we will create a stronger fifth player in food and a convenience
store chain with unrivalled geographic reach.
“The acquisition of Somerfield will provide the rocket fuel for our
three-year growth plan outlined in April of this year. Under this plan
we are revitalising our retail estate under a single unified brand –
modernising our stores, improving our product offer and service levels
for customers and members, and reinforcing our co-operative difference.”
The deal is still subject to approval from the competition authorities,
which could force the Co-Op to sell some of the stores it has acquired.
PetrolWorld 160708
|
