United Coops opts out of bid for Somerfield |
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Wed, 29 Jun 2005 16:05
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LONDON: United Cooperatives, in the run to acquire supermarket chain Somerfield Plc., has opted out.
In a statement Tuesday, United Cooperatives, owners of Co-op Late Shop convenience stores, said, "We said at the outset that this was not a must-do deal for us. We have had a look but have decided that it does not stack up for us."
The company had in May last announced it was considering making a bid as it felt it would make "sound commercial, operational and financial sense".
Bristol-based Somerfield, Britain's fifth biggest supermarket operator with a chain of 644 stores and 560 Kwik Save outlets and valued around 1.1 billion pounds, said it is still in talks with other potential bidders. A consortium led by Icelandic retail firm Baugur Group HF and another by London & Regional Properties Ltd, of Ian and Richard Livingston are said to be in the fray.
Somerfield had rejected a 1 billion pound take-over attempt by Baugur early this year.
United Cooperatives is the U.K.'s largest independent cooperative society, formed in 2002 through the integration of United Norwest and Yorkshire Cooperatives. It focuses on food, travel, motor dealerships, healthcare and funerals and had recorded sales of 1.9 billion pounds in 2004.
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