SuperValu owner Musgrave gets green light for €57m deal to sell UK division
Published 03/09/2015 | 08:26
Irish retail giant Musgrave has received regulatory clearance to sell its UK operations to a rival firm in a deal worth €57m.
The Cork-based company’s British business operated the the Budgens and Londis brands, which combined have almost 1,800 stores across the UK. It is being sold on a cash free-debt free basis to UK wholesale giant Booker.
Booker, the UK's biggest cash-and-carry operator, has now been cleared by the Competition and Markets Authority to snap up the grocery chains.
The €57m acquisition, announced in May, will strengthen Booker's high street presence, alongside its Premier and Family Shopper brands.
Londis and Budgens are made an operating loss before exceptional items of £7.4m (€10m) in 2014.
The acquisition is expected to complete on or before September 14.
A statement from Musgrave, which owns the Supervalu brand, said: "Musgrave Group today noted the decision of the UK Competition and Markets Authority to approve the sale of Musgrave GB to Booker Group PLC. Musgrave Group will now move to complete the transaction with Booker."
Charles Wilson, chief executive of Booker Group, said: "We are pleased that the acquisition of Londis and Budgens has been cleared by the CMA. This will help strengthen our support for independent retailers throughout Great Britain."