Supermarket giant Sainsbury’s is set to acquire convince store chain Nisa in an exclusivity deal thought to be worth in the region of £130 million, preventing
Nisa from speaking with other rivals companies, such as The Co-operative Group.
However, before the deal can go ahead the agreement needs to be put in front of Nisa’s 1,400 members, with a 50% plus majority needed for it to be finally approved. Nisa currently buys and distributes on behalf of more than 2,500 independently owned stores around the UK.
Nisa has been under pressure in recent years from budget brands such as Poundland. Sainsbury’s, on the other hand, has deployed an ambitious strategy to regain ground lost to budget supermarkets Aldi and Lidl, with the £1.4 billion acquisition of Argos parent company Home Retail Group proving to be a success.
The Telegraph reports that Nisa has been working with bankers at Lazard and has narrowed the list of potential buyers to Sainsbury’s and the Co-op.
Sainsbury’s bid is thought to be more attractive than its competitor Co-Op, and is now asking Nisa to sign an exclusivity deal that will prevent them from entering into further conversations with other bidders.