McColl’s £2bn retendering plans for Nisa could challenge Sainsbury’s takeover ambitions

Morrisons has pitched a last-ditch deal that would avoid McColl’s collapsing into insolvency, preserving the majority of its stores and workforce, Sky News has revealed.
The proposal was lodged with PwC, the adviser to McColl's lenders, with a response expected imminently.

McColl‘s is looking to retender its £2 billion supply deal with fellow convenience store chain Nisa, in a move that could have a knock-on effect for Sainsbury’s planned £130 million acquisition of Nisa.

McColl’s 1300 stores generates almost two fifths of Nisa‘s revenues through a five-year supply deal that will expire next year.

According to The Telegraph, McColl‘s was at first looking to end its links with Nisa and reportedly met with Sainsbury‘s executives to discuss further steps, but now McColl’s has brought forward its retendering plans.

Retail industry experts have questioned if Sainsbury’s will still splash out £130 million to takeover Nisa if it loses the McColl’s contract.

However, sources told The Telegraph that Nisa said Sainsbury’s takeover bid was not conditional on McColl’s.

READ MORE:  McColl‘s sales rise despite profit hit from Co-op deal

McColl’s chief executive Jonathan Miller would not comment on whether Sainsbury’s or Nisa had put in bids for the retender.

The news came as McColl‘s announced half-year results yesterday, and just weeks after Sainsbury’s announced its proposed £130 million takeover of Nisa.

In an interview with Retail Week,  Miller said McColl‘s was “back on the acquisition trail” and looking to acquire more convenience stores.

This year it acquired 298 former Co-op stores, and is now looking to buy independent players and plans to add up to 12 new stores to its portfolio this year.

Miller added that his business will buy another 24 stores next year and this would rise to up to 50 stores in 2019.

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