The addition of Somerfield's 880 grocery stores will make Co-op the U.K.'s fifth-largest grocery retailer behind Tesco plc, Wal-Mart Stores Inc.'s Asda, J Sainsbury plc and Wm Morrison Supermarkets plc, with a market share of 8%. Co-op is acquiring the business for well under the £2 billion to £2.5 billion initially predicted when Somerfield's owners formally put the chain on the block in January, though it is above the
£1.1 billion they paid in a 2005 buyout. In recent weeks media speculation had pointed toward a £2 billion deal.
Somerfield had sales in the year ended April of £4.2 billion and Ebitda of £223 million. Other members of the consortium selling Co-op include Kaupthing Bank hf, Barclays Capital and Robert Tchenguiz, the U.K. property tycoon. -
Laura Board
See full story on
TheDeal.comSee earlier story:
Owners seek Somerfield exit
