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Sainsbury's Nisa takeover talks cease

Sainsbury's Nisa takeover talks cease

It has been splashed across the national press this week that Sainsbury’s has stopped talks on the £130m takeover of grocery wholesale group Nisa over fears of intervention by the Competition and Markets Authority (CMA).

The Guardian reported that exclusive talks ended last week after the CMA expressed concerns over a similar merger between Tesco and Booker.

According to the paper's report, Nisa’s chairman, Peter Hartley, wrote to the group’s members saying Sainsbury’s was still interested in potentially making an offer but was not ready to do so until there was “greater clarity over the evolving regulatory and competition considerations."

SHD Logistics contacted Sainsbury's for comment but they declined.

Nisa is a group of independent local retailers across the UK. Its supply chain is delivered through Nisa’s long term distribution partnership with DHL, from warehouses located in Scunthorpe, Harlow, Stoke and Livingston.

The move by the major retailers to acquire 'convenience' retailers reflects the trend that consumers are shopping for less, more often, but is also a move which will help retailers avoid losing ground to Amazon, as it ploughs ahead with Amazon Fresh and Amazon Go.

Nick Miller, head of FMCG at Crimson & Co, says. “ Any company seeking to compete with Amazon in this market will need to match it on convenience and come close to it on the variety and breadth of its offering."

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