Supermarket merger poses ‘low risk’ to council investment

PUBLISHED: 08:00 11 May 2018

Queensway retail park, Worle.

Queensway retail park, Worle.

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Expert advice has been sought by North Somerset Council after Sainsbury’s and Asda announced plans for a multi-billion-pound merger.

The council bought North Worle District Centre, home to Sainsbury’s among other shops, using a £38million bank loan in March.

The merger, which is subject to review by the Competitions and Markets Authority, was announced last month – but North Somerset believes it is unlikely to undermine its investment.

The council received advice on the merger from property consultant Montagu Evans, which it appointed as its asset management advisor upon the purchase of the retail park.

A council spokesman said: “We have taken advice from our retained investment consultants since the news about the proposed merger of Sainsbury’s and Asda first broke and are satisfied the risks in respect of the North Worle District Centre are considered to be low.”

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