Shares in convenience store chain McColl’s rose over 3 percent on Tuesday, after it obtained approval from the Competition and Markets Authority to acquire 298 stores from the Co-operative Group.
The Co-op stores were sold to McColl’s in a £117 million deal in July, as part of the group’s turnaround strategy. The stores are equal to 10 percent of the Co-op’s total group and will be added to McColl’s 928 store strong portfolio.
Jonathan Miller, McColl’s chief executive commented:
“We are delighted that the CMA has approved our acquisition of these 298 quality convenience stores. This is a transformational deal, which substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.
“We have a long history and proven track record of successfully integrating convenience stores into our estate, and we expect these newly acquired stores to make a significant contribution to our future strategic plans.”
Miller added that he was “delighted” that the deal had got the go-ahead, saying:
“We have a long history and proven track record of successfully integrating convenience stores into our estate, and we expect these newly acquired stores to make a significant contribution to our future strategic plans.
When the deal was finalised in July, Co-op Food boss Steve Murrells said that the sale was “completely in line with our strategy, as these stores did not allow us to provide a sufficiently compelling own-brand offer for our members going forwards”.
“The proceeds will be re-invested to drive sustainable growth for our members and I’m delighted that all 3,808 colleagues will transfer to McColl’s on the same terms and conditions.”
McColl’s will begin to integrate the stores in late January 2017 and expects all conversions to be completed by the end of August 2017.
McColl’s Retail (LON:MCLS) shares are currently trading up 2.54 percent at 185.08 (1222GMT).