Merger In Store For Nisa And Costcutter

Scotsman:

GROCERY wholesaler Nisa-Today’s is believed to be in advanced merger talks with convenience store group Costcutter.

The discussions follow growing pressure from supermarket giants such as Tesco and Sainsbury’s, which are taking rising shares in the multi-billion-pound convenience sector.

Icelandic bank Kaupthing, which helped take Somerfield private, is reportedly financing the deal and will take an equity stake in the new enlarged firm.

The board of Nisa-Today’s, a £1bn-turnover-a-year independent buying group with between 700 and 800 wholesalers and retailers with equal shares in the company, was set to meet today.

The board was expected to hear a presentation from Kaupthing on the financial details of the merger, which would then have to be ratified by shareholders.

Costcutter is a member of Nisa-Today’s buying group and also has its own franchise operation of around 1400 stores.

Tesco’s rapid rise in the convenience store market, from almost zero in 2001 to 5.4 per cent last year, was fuelled by its acquisition of 1200-strong chain One-Stop in 2002.