Co-op waits approval from Nisa members for its takeover bid
Nisa members are set to vote today on the Co-operative’s proposed buyout of the convenience chain.
Last month the Nisa board recommended to its 1,190 shopkeepers who own the business to accept the deal.
Reports from recent Nisa shareholder meetings suggest growing support for the Co-op’s offer, but there are concerns about whether the numbers will reach the share that is required. The Co-op needs 75% of votes cast to approve its bid of nearly £140m.
The Nisa business, which stands for Northern Independents Supermarket Association, was set up in the 1970s with the aim of “protecting the interests of independents against the insurgence of the national supermarket chains”.
Some Nisa members are protective of this independent stance while others feel that in today’s climate the business needs to be stronger, particularly when faced with Tesco’s imminent takeover of Booker.
A Nisa spokesman said: “There is growing demand for a tie-up that provides greater buying power. The Co-op brings seven times the buying power of Nisa, and is offering members the flexibility to trade as they wish and keep the Nisa name.”
Meanwhile, the CMA is expected to reveal its findings on the Booker deal with Tesco early this week. It is expected that Tesco may have to sell off many of its Tesco Express or One Stop stores in order to alleviate competition concerns.