Sainsbury's in talks to purchase Nisa chain

The Scunthorpe-based grocery giant is understood to have tabled a £130 million bid for Nisa - whose 1,300 shopkeeper members run 3,000 stores - as part of a response to Tesco’s £3.7 billion merger with wholesaler Booker.

Nisa has been working with investment bank Lazard on a sale process and is thought to have received interest from several prospective buyers, including the Co-Op.

However, it is understood Sainsbury’s offer, at around £2,500 a share, was favoured by Nisa’s board.

Shares in Sainsbury’s were 2.3 per cent higher at 258.1p in morning trading, taking it to the top of the FTSE 100. They closed at that price.

Angus Grierson, head of corporate finance at LGB Corporate Finance, said: “Sainsbury’s move to acquire Nisa is another strategic move for one of the key players in the sector after some substantial deals seen recently in the hyper competitive grocery market, including Amazon-Whole Foods and Tesco-Booker. Sainsbury’s move into convenience shows the brand’s determination to remain a key player in the market.”

However, it is understood any deal is highly likely to face an investigation by Britain’s competition regulator.

The deal could face a competition probe on the grounds that it could risk reducing competition and customer choice in the sector, according to people with knowledge of the matter.