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The UK’s Competition and Markets Authority (CMA) has approved The Co-Op’s £137.5 million takeover of retailer Nisa after finding that the merger does not give rise to competition concerns.
The CMA declared that as The Co-op operates as a groceries retailer and Nisa operates as a groceries wholesaler they do not compete head-to-head, and that competition in the retail market meant it was unlikely the merged company would raise prices.
According to the CMA report, Nisa-supplied stores would also still be free to set their own prices and decide which products to stock after the merger, meaning the merged company “would not be able to directly determine how they compete”.
Sheldon Mills, senior director of mergers at the CMA said: “Millions of people throughout the UK shop at convenience stores and supermarkets, and it is vital that they continue to have enough choice to get the best value for them.
After careful consideration, we’ve found that there is sufficient competition in both the wholesale and retail sectors to ensure that shoppers are not worse off.”
In November, Nisa member’s voted in favour of the takeover by 75.79%, and a statement released by the company said 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 following the merger.
Peter Hartley, chairman of Nisa added: “Today’s ruling by the CMA is excellent news, and a significant step towards finalising the transaction that our members voted for last November.
“We are very excited about our future together which will help ensure that our members are best placed to serve their communities.”
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