THE £630 million acquisition by Tesco of the Quinnsworth/Crazy Prices and Stewarts chain from the Associated British Foods combine is now expected to be completed by the middle of next month, according to ABF.
ABE yesterday confirmed the timetable when commenting on its accelerated interim figures, brought forward to provide shareholders with an updated picture of its financial position.
Cashing Tesco's cheque for £630 million plus a £10 million dividend payable on the Irish companies' trading activities will increase ABF's net cash funds to £1.24 billion, compared with £454 million a year ago.
The substantial increase in net cash is expected to be used by ABE for a new foray into the acquisition market rather than for a "cash back" special dividend payment to shareholders. ABF has indicated that it is looking to expand, its added value ingredients businesses which are currently based on wheat, sugar and oils.
Speculation about possible acquisition candidates include Unilever's National Starch and Quest businesses put up for sale by chairman Mr Niall FitzGerald; Poland's sugar mills which are, being privatised and the committing business of CPC in the United States.
Interim figures from ABE indicate that the Quinnsworth/Crazy Prices and Stewarts chain is being sold against the backdrop of static earnings even before the onset of new competition from Northern Ireland store openings by Sainsbury's and Tesco.
The Irish food retailing activities are understood to have earned profits of nearly £60 million on turnover of £1.3 billion in the 12 months to September 14th, an increase of 25 per cent on the 1994-95 figures. However, ABE chairman Mr Garry Weston says the strong growth in Irish food retailing profit an end.
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