The CMA reached its decision because it deemed the Co-op (which is taking on £105 million of Nisa debt) to be a retailer and Nisa largely a wholesaler.However it also took into account the retail element, with the Co-op operating almost 4,000 stores and Nisa around 4,800.
The CMA’s senior director of mergers Sheldon Mills concluded that Nisa would still be able to set its own prices and was free to decide which products to stock.
He said: “After careful consideration, we’ve found that there is sufficient competition in both the wholesale and retail sectors to ensure that shoppers are not worse off.”
Under the terms of the deal, Nisa will continue to trade as a standalone business.
Commenting on the takeover approval, Nisa chairman Peter Hartley said: “The ruling by the CMA is excellent news and a significant step towards finalising the transactions that our members voted for last November.
“We are excited about our future together, which will help ensure that our members are best placed to serve their communities.”
Last month Cash & Carry Management reported that Nisa achieved final quarter sales of £377 million compared with £299 million in the previous corresponding period.
