Co-op Group offers to buy Nisa for £143m

The Co-operative Group has formalised its offer to acquire grocery chain Nisa for £143m.

Co-op Group offers to buy Nisa for £143m

The board of Nisa, which like Co-op is member-owned, has unanimously recommended the offer to its shareholders, reported Retail Gazette. It will be put to Nisa's 1,400 members to vote on in November. 

The Co-op is offering to buy all of Nisa's shares for up to £137.5m. This, combined with payment for associated deal costs of £5.5m brings the total up to £143m.  

It will also take on Nisa's debt of £105m and provide opportunities for Nisa members to work in independence.

The Co-op plans to retain Nisa, which has 3,200 stores, as a standalone business and brand. 

This deal has been in the works since late August as a bid by Sainsbury's ground to a halt over fears that competition authorities would intervene. 

Interest in Nisa sprung up after Tesco proposed taking over cash-and-carry group Booker for £3.7bn.