Woolworth/Bhs merger talks fail
High street names unable to reach agreement
June 14 2002
Woolworths has ended merger talks with Bhs.
The two UK retailers have been unable to agree on terms for a merger after several weeks of negoitiations.
A Woolworths statement said: “After due consideration of the potential benefits of a merger, the board does not believe that such a merger, with its attendant risks and uncertainties, would be in the best interests of shareholders.”
The Board believes Woolworths’ most important priority should be the implementation of its recovery plan.
There is said to be no chance of reviving the discussions. Woolworths is not in talks with any other potential merger partners, although it would not rule out the possibility.
Mergers or partnerships are seen as highly probable in the UK market as retailers attempt to compete with the growing strength of international players, including Tesco.
Woolworths already has a clothing partnership with Peacocks, with branded areas in its Woolworths Big W superstores, while Bhs has trialed Iceland food areas in its stores. Peacocks has itself been linked to a takeover of rival discounter Bon Marche. The joint venture between Sainsbury’s and Boots also continues.
