Costcutter looks like it will become the latest business to join the rush for consolidation in convenience, after the company’s members were told a deal could be imminent.
Sir Michael Bibby, managing director of the UK’s second-biggest chain of corner shops, sent a letter to members telling them to expect an announcement on a potential “collaboration” shortly, The Telegraph andCity A.M.reported.
It is not yet clear whether Costcutter will be bought by another company or acquire a rival.
'When Tesco announced its acquisition of Booker back in January, it took the entire market by surprise,” Bibby wrote in the letter, which was first reported by The Grocer. “Since then, businesses across the grocery and convenience sectors have been open to having discussions that would not have seemed imaginable just one year ago.
'There are exciting opportunities on the table right now... I hope and expect to be able to make a formal announcement soon.”
Costcutter, which runs 2,200 stores nationwide, has shown interest in consolidation in the past, attempting to take over the Nisa convenience chain in 2013 – an offer that was ultimately refused by Nisa’s members.
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