Musgrave is expanding into Britain, following the purchase of Rewe of Germanys 28% stake in Budgens for 89p a share.
The Irish wholesale food distributor has the option to increase the stake in the convenience store retailer to 43.5%, worth £89.4m. It is thought it will make a full bid for Budgens after about a year.
It could bid earlier if another company makes an offer. Musgrave has 500 food stores across the Irish Republic and Northern Ireland.
Budgens expects to launch a franchise arm with about 50 outlets in the division over the next couple of years if it proves successful.
Financial Times 30/08/00 page 23, page 44 (Smaller Companies)
The Daily Telegraph 30/08/00 page 27
The Times 30/08/00 page 21
The Independent 30/08/00 page 15
The Guardian 30/08/00 page 19
