This is the second tranche of store divestments announced by Morrisons since it completed the takeover of Safeway in March this year and is a continuation of the disposals required by the undertakings given by Morrisons to the Office of Fair Trading ("OFT") in December 2003.
The latest package is made up of 13 Safeway stores, plus the original Morrisons store at Ripon in North Yorkshire which, in line with the OFT undertakings, Morrisons has elected to sell instead of the recently converted Safeway store in the same area. The transaction is conditional on the approval of the OFT in respect of each of the stores.
The store disposals will occur in accordance with an agreed programme over a three-month period, commencing shortly after the transaction becomes unconditional. The consideration attributable to each store will be paid by Sainsbury’s on completion of the sale of each individual store. The aggregate book value of the net assets attributable to the 14 stores to be disposed of is £110 million.
Existing staff at all Safeway stores involved will transfer to Sainsbury’s.
The list of stores is:
Chafford Hundred
Cramlington
Darlington
Grantham
Heaton
Lytham St Annes
Mansfield
Scarborough
Spalding
Team Valley
Whitehouse Farm
Scunthorpe
Tadcaster
Ripon (Morrisons) |
