Post by Kev on Jan 24, 2004 3:31:04 GMT -5
LITTLEWOODS' proposed merger with GUS's former catalogue business has been given the go-ahead.
The approval yesterday from the Secretary of State for Trade and Industry, Patricia Hewitt, will result in the creation of a massive £2.7bn business based at Speke, Liverpool.
Yesterday's announcement brings an end to concerns that permission for the merger would be refused due to fears it could damage the interests of consumers.
The merged business will be housed in a new building to be constructed at Estuary Commerce Park, at Speke.
Around 1,200 staff in Liverpool and 500 former GUS staff in central Manchester could be affected by the move.
The merger permission completes a transformation in the fortunes of Littlewoods which has come about since its acquisition of the retail group by multi-millionaire twins Sir David and Sir Frederick Barclay. They paid £750m to the Moores family in October,
2002. Prior to that, Littlewoods was barely profitable and had been a takeover target for another catalogue rival, N. Brown.
Last May, the brothers paid £590m for home shopping catalogue titles owned by close rival GUS. Since then, the two businesses have been run separately while awaiting merger approval from the UK's competition regulators.
Lit tlewoods chairman David Simons said yesterday: "We are delighted by this decision as we have always believed we have a strong case, and we are pleased that the Competition Commission has recognised that home shopping competes with the rest of the retail sector.
"We are grateful for the support we have received from the workforce, union leaders and politicians."
Had the merger been refused, it would have thrown the future of the former GUS catalogues into doubt. The traditional catalogue business, particularly the part of it based around a network of agents, has been in sharp decline.
Source.Liverpool Echo
The approval yesterday from the Secretary of State for Trade and Industry, Patricia Hewitt, will result in the creation of a massive £2.7bn business based at Speke, Liverpool.
Yesterday's announcement brings an end to concerns that permission for the merger would be refused due to fears it could damage the interests of consumers.
The merged business will be housed in a new building to be constructed at Estuary Commerce Park, at Speke.
Around 1,200 staff in Liverpool and 500 former GUS staff in central Manchester could be affected by the move.
The merger permission completes a transformation in the fortunes of Littlewoods which has come about since its acquisition of the retail group by multi-millionaire twins Sir David and Sir Frederick Barclay. They paid £750m to the Moores family in October,
2002. Prior to that, Littlewoods was barely profitable and had been a takeover target for another catalogue rival, N. Brown.
Last May, the brothers paid £590m for home shopping catalogue titles owned by close rival GUS. Since then, the two businesses have been run separately while awaiting merger approval from the UK's competition regulators.
Lit tlewoods chairman David Simons said yesterday: "We are delighted by this decision as we have always believed we have a strong case, and we are pleased that the Competition Commission has recognised that home shopping competes with the rest of the retail sector.
"We are grateful for the support we have received from the workforce, union leaders and politicians."
Had the merger been refused, it would have thrown the future of the former GUS catalogues into doubt. The traditional catalogue business, particularly the part of it based around a network of agents, has been in sharp decline.
Source.Liverpool Echo
