Sainsbury and Ocado Shares Rise on the Back of Bid Rumours

Supermarket shares stage a recovery as further consolidation in the sector looks imminent. Shares of Sainsbury up 2% while online grocer Ocado shares rally 11% 

Karen Kwok 19 June, 2017 | 3:05PM
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Sainsbury’s (SBRY) is leading the FTSE 100 with a 2% gain this morning, following the news at the weekend that the supermarket is close to a takeover deal of Nisa Retail, a UK-based convenience store group.

Britain’s second-biggest supermarket chain is understood to have won a bidding war with the Co-operative Group for Nisa, according to The Sunday Times. Sainsbury’s bought Home Retail Group – which owns the Argos chain – in April 2016, in a £1.4 billion deal.

Sainsbury’s is reported to have offered a deal worth £130 million for Nisa, which has 2,900 stores and £1.3 billion in sales. Citing unnamed sources, the newspaper said that the mutual’s board decided to make Sainsbury’s the preferred bidder at the end of last week, even though Co-op matched and then offered to beat its rival "significantly".

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating Inc3,437.36 USD0.00Rating
Marks & Spencer Group PLC238.70 GBP0.00Rating
Morrison (Wm) Supermarkets PLC  
Ocado Group PLC1,680.00 GBP0.00Rating
Sainsbury (J) PLC278.80 GBP0.00Rating
Tesco PLC277.85 GBP0.00Rating
The Kroger Co44.65 USD0.00Rating
Walmart Inc135.47 USD0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for