Somerfield: for the highest bidder

Somerfield, the convenience store chain, has offered itself for auction. A number of supermarket groups, including Asda, J Sainsbury and Wm Morrison are interested. The company value is estimated around €3.5 billion. 

US Citigroup has been appointed to run the auction, but would not comment.  Somerfield went private two years ago for €2.4 billion, by a consortium including the private equity group Apax Partners, Barclays Capital and the property entrepreneur Robert Tchenguiz. They had hoped to refinance the business to release cash last summer but failed to complete the deal before the credit crunch set in.

Waitrose is also on the list of potential buyers. The British supermarket chain has ambitious expansion plans to double in size and is believed to be looking at sites in Scotland. Marks & Spencer may also take part in the auction. It has stated ambitions to expand its food business.  Somerfields announcement to be on sale came as the group reported an "exceptional Christmas" for sales. It posted a 6.7% rise in like-for-like sales, for the three weeks prior to January 5, with same-store sales up 4.7% in the six-week festive period.

Somerfield has more than 1,000 stores around Britain diverted in ‘neighbourhood’ and ‘transient’ stores. Somerfield has 50,000 employees who serve 12 million customers per day.

Related link:
Rotch Property Group