Co-op enters exclusive takeover talks with Nisa

Nisa Retail has given Co-op Group time to conduct exclusive due diligence as the two sides look to agree a takeover of the member-owned convenience store group.

With supermarket giant Sainsbury having eased off its pursuit of Nisa due to regulatory concerns, Nisa on Wednesday granted a period of exclusivity to the Co-op.

In a message to shareholders on Wednesday, Nisa chairman Peter Hartley said Co-op had "confirmed, subject to further due diligence, its intention to progress matters as quickly as possible, in the hope that a transaction can be finalised".

Some key elements of the deal had not yet been resolved, he added: "As a result, and in line with the board of Nisa's duty to act in the best interest of all Nisa members, your board has granted the Co-op a period of exclusive due diligence from today.

"Thereafter, and subject to the results of the due diligence, it is anticipated that the Co-op could be in a position to make a final offer to the Members for your consideration.

"Should an offer of merit emerge from this process, it will be for you, the members, to decide on whether to accept it. However, it is important to stress, that there is no guarantee that an offer will be forthcoming."

Hartley stressed that the convenience sector continued to evolve at pace and said the board "will continue to review serious queries and offers which emerge (within the constraints of any agreed exclusivity period)".

Co-op is reported to have told Nisa it is prepared to pay close to £140m for the business despite the recent loss of a wholesale supply deal with McColl's to Wm Morrison, Sky News said.