Musgraves offer €57m for Londis UK stores

Food distributor Musgrave has made a €57m offer for the British stores of convenience retail group Londis.

Musgrave has agreed with the Board of Londis to buy the entire issued capital of the company.

This offer will be considered and voted upon by shareholders at a Londis Emergency General Meeting on December 30.

If it is accepted, Musgrave will take control of Londis at the end of January 2004. Londis has 2232 stores located throughout England, Scotland and Wales with a combined retail turnover is in excess of €1.4bn.

If the proposed deal goes through, the Londis name will be retained alongside Musgraves other British operation, Budgens.

However, it is believed that there will be purchasing, retail development and other synergies between the companies. Hugh Mackeown, Chairman, Musgrave Group, said: "The Londis business bears a striking resemblance to Musgrave in terms of retail formats, franchise models and management culture.

"The Board of Musgrave firmly believes that this offer, which has the unanimous support of the independent directors of Londis, represents a unique and positive opportunity for the Londis shareholders," he added.