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

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
Amazon.com Inc2,009.29 USD-4.14
Marks & Spencer Group PLC180.15 GBX0.61
Morrison (Wm) Supermarkets PLC182.75 GBX-0.08
Ocado Group PLC1,096.00 GBX0.05
Sainsbury (J) PLC206.60 GBX-0.14
Tesco PLC248.00 GBX-0.52
The Kroger Co30.27 USD-0.13
Walmart Inc116.32 USD-1.91

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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