LONDON - Britain's numero uno supermarket chain Tesco was on the verge of adding 30 petrol stations and related shops to its portfolio after it made an offer to that effect to rival William Morrison. The stores are valued at around £55 million and have come onto the market following the Morrison/Safeway merger in March 2004.
Tesco said that it plans to convert the shops around the petrol stations into Express convenience stores. The supermarket giant issued a statement saying, "This is a small deal that will allow Tesco to convert freehold sites in good locations, with new and conforming forecourts and shops, to its Express convenience format. The stores are complementary to Tesco's existing Express network and will bring the Tesco shopping experience to more local neighborhoods across the country. Customers will benefit from lower prices and improved choice, range and service in the growing convenience market."
Most of the petrol stations are situated in diverse locations such as the West Midlands area, Newcastle, Bolton, Norwich, Middlesbrough, Cardiff and Exmouth. The company declined to disclose any other details about the deal. This agreement is subject to final approval by the Office of Fair Trading. Tesco shares hit the 325 pence mark at close on Tuesday, while Morrison closed at 182-1/2 pence.
This deal when approved would net Tesco around 6 percent of the country's £24 billion convenience market.
Posted
on : Wed, 31 Aug 2005 21:05 GMT | Loans News
By : Salim Patel
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