Co-operative Group purchases Somerfield
LONDON —
The Co-operative Group said Wednesday it had struck a deal to acquire British supermarket Somerfield for 1.56 billion pounds (US$3.12 billion).
The deal would secure the Co-op’s place as Britain’s fifth-biggest food retailer.
The Manchester, England-based Co-operative Group Ltd. is the world’s largest consumer cooperative. It already has some 2,200 supplies, part of its empire of food, drug, travel, financial and burial rites services. The Somerfield Group operates on the point 900 stores, including 140 gas stations.
Somerfield was purchased by a consortium of investors in 2005 as being 1.1 billion pounds (at another time about US$1.9 billion). The consortium, which includes property tycoon Robert Tchenguiz, private equity steady Apax Partners and investment bank Barclays Capital, was reportedly seeking about 2 billion pounds (US$4 billion) for the supermarket chain.
The Co-op, a mutual company owned by the agency of 2.5 the multitude members, recently announced plans to double its profits and invest 1.5 billion (US$3 billion) in its real estate holdings.
Co-op Chief Executive Peter Marks said Somerfield’s acquisition would provide “rocket fuel” with a view to his group’s increase plans.
The deal is still at one’s beck to regulatory approval.
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