Angela Monaghan 

John Lewis denies Waitrose takeover approach by Amazon

JLP chair rejects reports about internet firm’s attempt to initiate formal talks
  
  

According to the Sunday Times report, formal talks were blocked by the board of Waitrose’s owner, John Lewis Partnership.
According to the Sunday Times report, formal talks were blocked by the board of Waitrose’s owner, John Lewis Partnership. Photograph: Neil Hall/Reuters

John Lewis Partnership (JLP) has rejected reports that it was approached by Amazon last year to take over the Waitrose supermarket chain.

According to a Sunday Times report, a senior executive from Amazon pushed for a formal meeting, but was blocked by JLP’s board.

Amazon’s move into the UK grocery sector two years ago, with the launch of the online delivery service Amazon Fresh, has long prompted speculation among City analysts that it could be interested in buying a more established UK supermarket chain.

Its $13.7bn (£10.12bn) purchase of the organic food chain Whole Foods Markets last summer was seen as a statement of its ambitions, earning it about 460 stores, including nine in the UK, where Whole Foods has operated since 2004.

The proposed £15bn Asda–Sainsbury’s merger to create a new grocery superpower has been seen as attempt to fight off the increasing threat from Amazon.

According to the Sunday Times, the attempt to open talks with Waitrose was made by Ajay Kavan, vice-president of special projects at Amazon. Kavan reportedly had several “enormously informal” conversations last November with an unnamed director of JLP about a possible deal .

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However, Sir Charlie Mayfield, chairman of JLP, denied there had been an approach. He said: “These times are ripe for speculation but there has been no approach to the Partnership by Amazon regarding Waitrose and nor would I expect there to be.”

Amazon said it did not comment on rumour and speculation.

Waitrose became part of the John Lewis Partnership in 1937 when it had 10 stores. There are now more that 350 Waitrose stores, as well as shops at Welcome Break service stations.

The partnership structure means the John Lewis and Waitrose businesses are owned by the group’s 85,000 permanent staff, who share in the profits. In March, JLP cut its annual staff bonus to the lowest level in 64 years after profits plunged.

 

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