Co-op’s buyout of Nisa approved

The Co-op has received the all-clear from the UK’s competition watchdog for its £137.5million acquisition of Nisa.

The Competition and Markets Authority (CMA) will not refer the takeover for a more in-depth investigation because it has concluded shoppers will not be worse off as a result of the deal.

CMA said the two firms were not in competition, because the Co-op is a retailer and Nisa is a wholesaler.

But the regulator was also investigating the merger because Nisa supplies 4,000 grocery stores, meaning the tieup could affect the Coop’s competitors.

CMA said grocery stores supplied by Nisa would still be able to set their own prices and were free to decide which products to stock. It also

“Co-op will retain Nisa as a standalone business”

found there was enough competition within the wholesale and retail sector to ensure shopkeepers were free to switch supplier if the group tried to raise prices or reduce the quality of services.

The combined group will see the number of stores the Co-op supplies almost double to 7,000, from 3,800 outlets, but under the terms of the deal Co-op will retain Nisa as a standalone business and brand.

Regulatory approval comes after Tesco finalised its £3.7billion tie-up with wholesaler Booker Group, which was subject to a similar probe.

Co-op will buy the chain