B&M speculation boosts shares
Shares in B&M rose sharply yesterday following weekend reports that supermarket giant Asda is mulling over a Â£4.4 billion takeover of the discount retailer.
Asda, owned by Walmart, is exploring a bid for the firm amid a flurry of consolidation in the supermarket sector, according to reports.
B&M shares were up nearly five per cent to 357p in morning trading on Monday.
The chain is owned by the billionaire Arora brothers, who have built B&M up to a 500-plus store retail giant since taking control of the firm in 2004.
B&M’s first store was launched in Cleveleys and it quickly expanded across England and Britain.
Acquiring the retailer would give Asda access to a network of high street shops through which to distribute its products, including the popular George clothing range.
Clive Black, analyst at Shore Capital, said: “B&M would bring great capability in general merchandise value retailing for Asda, with its strong range, authority, pricing and space growth, while providing George the scope for space growth in largely complementary locations.”