The two entrepreneurs targeting Somerfield have officially ditched their takeover attempt. By doing so they have ruled themselves and Sainsbury's, who would have helped finance the bid by buying 171 stores, out of making a new approach within the next six months.
John Lovering, the chairman of the Peacocks discount fashion chain, and Bob Mackenzie, the former boss of National Car Parks had made two bids for the chain. The first in April and an increased bid last which valued the company at £593 million.
Sainsbury's had been eager not to be seen as part of the takeover bid because of the six-month bid ban that applies under City code. However, the Takeover Panel has ruled that Sainsbury's was an integral part of the deal.
Of the 171 stores that Sainsbury's wished to buy 156 are less than 15,000 square feet and it is understood they wanted to convert them into 'local' stores. The supermarket said it will still seek Office of Fair Trading Clearance to buy the Somerfield stores.