Blog: Dean BestSainsbury's should breathe a sigh of relief

Dean Best | 5 November 2007

Investors in UK retailer Sainsbury’s would have been disappointed that suitor Delta Two has abandoned plans to buy the company.

Shares in the UK’s third-largest retailer slumped today (5 November) after the Qatar-backed fund decided not to proceed with plans for a GBP10.6bn (US$22.1bn) bid.

Indeed, at the current share price, Delta Two faces a loss on its investment in Sainsbury’s, in which it holds a 25% stake and is the company’s single largest shareholder.

Nevertheless, perhaps after the months of talks and speculation, Sainsbury’s is in a stronger position as an independent company, than if Delta Two’s backers had stumped up the extra funding needed to convince its sceptical pension trustees.

The UK grocery sector remains – despite calls to the contrary – a competitive place. And competition looks likely to intensify, at least if the UK’s Competition Commission has anything to do with it.

Would Delta Two have had the resources to invest further in the company and to fight the likes of Tesco and Asda head on? I doubt it.


BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?