United Co-op Shows Interest in Somerfield
Another player has entered the battle for UK supermarket chain Somerfield, and that player is the United Co-op.
The United Co-op said that it was considering making an offer, but not details have been disclosed.
This Is London says:
The United Co-op is the UK’s largest independent co-operative society and achieved sales of 1.9bn last year. It was formed in 2002 following the integration of United Norwest and Yorkshire Co-operatives.
The purchase of Somerfield would significantly increase its national presence, particularly in the South. The majority of its stores are situated in the Midlands, North West and Yorkshire.
A consortium including Icelandic retailer Baugur and Iranian tycoon Robert Tchenguiz, as well as the Livingstone brothers’ London & Regional property group is already looking to takeover Somerfield.
Topland and Asda were also said to have been interested in the company, but apparently neither is pursuing it any further.
“We are taking a look at Somerfield because we believe a combination of our businesses could make sound commercial, operational and financial sense. However, we are at an early stage in the process,” United Co-Operatives CEO, Peter Marks told Reuters.
Somerfield shares increased 2.3% after news of the United Co-op entering the scene.