Convenience chain McColl's (MCLS) has agreed to purchase 298 stores from mini-grocer rival Co-operative Group for £117m. To help fund the deal, McColl's is raising £13.1m through placing more than 10m new shares.
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McColl's chief executive, Jonathan Miller, said the new stores were "profitable, well-invested" and "the perfect size" for the McColl's operating model. They should be a "strong strategic fit" with the group's existing portfolio of 933 convenience stores and provide increased exposure to the fresh and chilled food products category.
The acquisition is conditional upon shareholder approval, as well as a regulatory thumbs-up from the Competition and Markets Authority (CMA).
