Sainsbury’s eyes newsagent deal

SUPERMARkET giant Sainsbury’s could sign a £2bn deal to supply newsagent chain McColl’s as grocers continue fighting to secure their futures.

The pair are said to be discussing a deal which would see Sainsbury’s flog its products to McColl’s 1,400 stores.

Sources hinted an even wider proposal might be on the table, and McColl’s has previously been discussed in City circles as a possible takeover target. It raises questions about a separate Sainsbury’s plan to buy convenience firm Nisa for a reported £130m.

Nisa currently has a five-year contract to supply McColl’s with up to £500m of goods every year – a deal which accounts for around 40pc of the former’s £1.2bn revenue.

But this partnership is about to end, meaning a rival could swoop in. It was allegedly discovered by Sainsbury’s while the supermarket chain was analysing Nisa.

The tie-up talk comes as grocers battle German discounters and American tech giants.