The deal, which was sealed last Friday placed a 135p value on each Budgens share, and put an end to months of talk around the City as to when 28-per-cent shareholder Musgrave would go for total takeover.

Budgens ceo Martin Hyson said the buyout by its largest shareholder would bring benefits for the UK chain as it 'could only be strengthened' by being part of a larger group increasing purchasing power fourfold.

However, Budgens will get to keep its name, which has a130-year-old history, and will be run as an entirely separate division by its Irish parent.

Both groups have similar store profiles focusing on fresh produce for local neighbourhoods. Musgrave has declared it chose Budgens to launch into the UK as it is 'the one group we identify with very easily.' Budgens has been expanding its core of 230 supermarkets based in south-east England at the rate of 15 to 20 new stores a year and this pace is likely to continue under the new regime.

Musgrave is a family-controlled business with a 125-year history. It supplies a network of more than 500 independent retail franchisees throughout all Ireland.

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