10 May 2006


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Costcutter and Nisa-Today's "in merger talks"


independent

Costcutter and Nisa-Today's are at an "advanced" stage of negotiations for a possible merger, according to media reports today.

A source revealed that grocery wholesale and symbol group Nisa-Today's are expected to brief their staff tomorrow ahead of a possible announcement on the proposed deal.

A report in the Daily Telegraph revealed today that the possible merger was being spearheaded by Icelandic investment bank Kaupthing, which was previously involved in the consortium that bought Somerfield.

Kaupthing is reported to be financing the deal with a view to taking an equity stake in the merged company.

According to reports, the two retail groups are understood to have been discussing a mooted merger for the past nine months. A source revealed that the Nisa-Today's board was likely to meet today with Kaupthing to discuss the financial details of the proposed deal.

Costcutter, which is a member of Nisa-Today's buying group, currently has around 1,400 franchised stores.

Nisa-Today's chief executive Neil Turton last week told Independent Retail News that the firm's fascia operation, which now comprises some 380 outlets, was "on course" to reach the 1,000 store mark by 2008.

Both companies have so far declined to comment on the possible deal, although a spokesperson for Nisa-Today's described it as "pure speculation".

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