C Butt in talks over impact of Asda's buyout of Netto chain
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C BUTT SAYS it is still waiting to hear how its contract with Netto will be affected by Asda's £778m acquisition of the Danish-owned supermarket.
Clive Hodgkinson, MD of the Northamptonshire haulier, which signed a five-year distribution deal with Netto in September 2009, says his firm is still in negotiations with both retailers over how its partnership will be affected by Asda's takeover of Netto in 2011.
Last week Asda revealed its plans for the distribution network of Dansk Supermarked's UK sub sidiary. It intends to absorb Netto's South Elinsall, West Yorks DC into its own network, converting it into an ambient cross-dock centre. It is also looking to shut Netto's Daventry. Northants site.
Volumes will be consolidated into Asda's other depots, while
some new distribution capacity will be introduced in the North-West.
Under the deal,Asda has complied with the Office of Fair Trading's conditions that 47 of the Netto stores should he sold, meaning the remaining 146 stores will trade under the. Asda name by late summer 2011.
Hodgkinson confirms negotiations with the two supermarkets are continuing, but would not comment further. Asda says it is too early to comment on how the acquisition will affect transport operations.