Bibby Line Group has rejected a £15m bid from the Co-op to buy Costcutter, according to reports.
According to Sky News, the Costcutter owner had been approached by Co-op with an offer several weeks ago. Although the offer had been declined, further talks are still understood to be open.
The news comes as Co-op's supply deal with Costcutter is set to start on 16 July as the symbol group's retailers get own-label products from the chain. Co-op's acquisition of Nisa had been given final clearance in May.
Co-op declined to comment, while Costcutter has been approached for a statement.
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