The Co-operative Group’s £140mln proposed takeover of convenience store wholesaler Nisa has been approved by the UK competition watchdog.
The Competition and Markets Authority (CMA) revealed that it will not refer the merger for an in-depth investigation following an initial probe into the deal.
READ: Sainsbury's shelves planned Nisa takeover over competition concerns
The Co-op swooped in with an offer to buy Nisa in October after rival J Sainsbury (LON:SBRY) shelved plans to acquire the wholesaler.
READ: Co-op makes formal takeover offer of £143mln for Nisa
The deal, which received approval from Nisa’s shopkeeper members in November, is expected to be completed in early May.
“We’re delighted with the CMA decision and are really excited about sharing our plans for the future once we gain Court sanction,” said Jo Whitfield, chief executive of Co-op Retail.
“Our strategy is to get closer to communities and our new business will create a strong product offer and improved prices for Nisa members that will engage their shoppers across the UK,”
In August, Sainsbury’s had cited worries about how the CMA was assessing Tesco PLC's (LON:TSCO) purchase of wholesaler Booker on announcing its decision to walk away from a Nisa takeover.
In December, the CMA gave Tesco the green light to buy Booker.