Co-op reported to be in the hunt for Londis

The Co-op is set to unveil a £66m (€100m) offer for convenience store business Londis in a bid to scupper a deal by Budgens owner Musgrave, it was reported today.

Londis – owned by the shopkeepers who hold shares in the wholesaling and distribution operation – is currently seeking approval of a £60m (€90.9m) offer from Musgrave.

But that deal could be stalled by an offer from the Co-op, according to The Observer.

It is understood that Co-op chief executive Martin Beaumont will make a move before shopkeepers meet on June 22 to vote on the Musgrave bid. The Co-op refused to comment on the report today.

Last month Co-op bought the 64-strong Conveco chain of cornershops, bringing its tally of stores to 1,820 and giving it a foothold in the South West of England.

The Manchester-based group has bought some 750 stores over the past two years, primarily through the acquisition of chains Alldays and Balfour, making it the UK’s biggest convenience operator.

Today’s report comes just days after Londis rejected an offer from the Lancelot consortium, set up by former directors of corner shop chain T&S Stores.

Iceland-to-Booker retail group Big Food also dropped its interest in buying Londis following a review of financial data.

Big Food said the review raised a number of questions regarding profitability and financial condition – “both of which seem to understate the company’s potential”.