The OFT has rejected the allegations of cartel activity that sensationally derailed the proposed merger between Nisa-Today's and Costcutter last year.
The Grocer has learnt that the OFT closed the file on the case earlier this month after being told by both groups that the arrangements they had in place allowed for free movement of their members from one group to another, and that their members had been, or would be, made aware of this.
Nisa-Today's said it was "pleased with the outcome as it allows the company to move forward in developing the business in the future".
The deal collapsed last October because Icelandic investment bank Kaupthing, which was financing the merger, imposed new conditions after rebel Nisa shareholders group the Nisa Members Association made the cartel complaint to the watchdog.
Despite the merger's collapse, Costcutter's ability to attract independent retailers remains unscathed. The York-based retailer has added 130 sites to its independent store portfolio in the past 12 months and now operates 1,500 symbol stores, representing 9.5% growth year-on-year, according to our survey of leading symbol groups (p45).
During the protracted merger talks, the NMA had called on Costcutter retailers to defect to the Nisa symbol in a bid to negate any need for a merger.
Costcutter also came under attack from rival symbol operator Select & Save. The Midlands group launched a campaign offering Costcutter retailers up to £50,000 if they switched to its fascia.
Costcutter executive chairman Colin Graves said: "Costcutter continues to recruit quality stores. Further developments for 2007 include our biggest-ever TV ad campaign and an increased spend on national press advertising."
Costcutter had gained a commitment to join the symbol from 21 retailers in the past two weeks, he said.
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