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Costcutter Owner Rebuffed £15mn Co-op Takeover Bid: Reports

Published on Jul 9 2018 12:00 PM in Retail tagged: Trending Posts / The Co-operative Group / costcutter

Costcutter Owner Rebuffed £15mn Co-op Takeover Bid: Reports

The owner of convenience chain Costcutter, Costcutter Supermarkets Group, has rejected a £15 million takeover bid from Britain's The Co-operative Group, according to The Times.

According to reports, the offer was rebuffed many weeks ago. The deal would have created a retail chain of more than 4,000 stores.

The two chains had recently struck a wholesale agreement in November, following the collapse of the Palmer and Harvey wholesale group.

The deal sees the Co-op supplying 2,200 convenience stores across the UK, including Costcutter, Mace, Simply Fresh, Supershop, and kwiksave.

According to The Times report, the Co-op declined to comment and Bibby Line, the owner of Costcutter, couldn't be contacted at the time.

Industry Consolidation

Other retailers have been pairing up in an effort to create a stronger negotiating position with suppliers. Last week, British and French retail giants Tesco and Carrefour announced a long-term purchasing alliance in order to reduce costs.

The same week, European retailers Casino, Auchan, Metro, and Schiever Group created a new purchasing alliance, dubbed 'Horizon'.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.

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