Published reports in the UK say that a union group representing more than 20,000 Sainsbury employees is trying to get the British government to block the proposed acquisition of Sainsbury by Delta Two, the Qatari royal family's investment vehicle.
Delta Two already owns 25 percent of the company, having upped its position in the chain from 18 percent just last month.
Brian Revell, a national organizer with Unite, the union group, described Sainsbury as a "national icon with a history going back over 150 years,” and asked, “"How on earth can it be in Britain's interest to allow Sainsbury to become the nationalized property of a Gulf state?” Part of the union’s concern is that Delta Two is more interested in Sainsbury’s real estate than its retailing business, and therefore could put numerous jobs at risk through a property-driven growth strategy.
Both Sainsbury and Delta Two have said that while discussions have been held, they may not lead to a formal offer and deal.
Delta Two already owns 25 percent of the company, having upped its position in the chain from 18 percent just last month.
Brian Revell, a national organizer with Unite, the union group, described Sainsbury as a "national icon with a history going back over 150 years,” and asked, “"How on earth can it be in Britain's interest to allow Sainsbury to become the nationalized property of a Gulf state?” Part of the union’s concern is that Delta Two is more interested in Sainsbury’s real estate than its retailing business, and therefore could put numerous jobs at risk through a property-driven growth strategy.
Both Sainsbury and Delta Two have said that while discussions have been held, they may not lead to a formal offer and deal.
- KC's View:
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Good luck.
This deal will happen if it makes financial sense, and all the “national icon” talk in the world is unlikely to derail it.
