Archived

This topic is now archived and is closed to further replies.

GRDadof3

Tesco to Purchase Meijer?

Recommended Posts

There is an eye-popping article at WOODTV:

http://www.woodtv.com/Global/story.asp?S=4153270

Here's the Reuters article:

http://today.reuters.com/news/newsArticleS...TRS&srch=meijer

With other links:

http://72.14.207.104/search?q=cache:m9sSWm...jer+tesco&hl=en

http://72.14.207.104/search?q=cache:9FJfqH...jer+tesco&hl=en

Here's Tesco's website:

http://www.tescocorporate.com/page.aspx?po...6BE78EB3CF55A11

I think I predicted something like this earlier this year, due to Meijer's restructuring and complete overhaul of its branding and store layouts...

Share this post


Link to post
Share on other sites


I figure its only a matter of Fred croaking when Meijer gets sold... It might not be true now, but I bet after the christmas season is over, something will be announced..

Share this post


Link to post
Share on other sites

I'll boycott...

"Meijer officials issued a memo to staff workers saying, "It is important for our entire team to know that these rumors are false and that we are not negotiating with any company for the sale of any part of our company. Our family is committed to Meijer's future and our success."

Thats PR speak for SOLD!!!

Share this post


Link to post
Share on other sites

I'll boycott...

"Meijer officials issued a memo to staff workers saying, "It is important for our entire team to know that these rumors are false and that we are not negotiating with any company for the sale of any part of our company. Our family is committed to Meijer's future and our success."

Thats PR speak for SOLD!!!

:rofl: I remember when I worked at a Meijer during college, a coworker of mine, who was retired from his other jobs knew what 5-year plans meant. It meant 5-years and we sell...

Before the 5 year plan it was a 10 year plan, then a 20 year plan. He says the way you know someone is rearing to sell is when the company plans get shorter and shorter. And to be honest, hes generally right.

Share this post


Link to post
Share on other sites

Thats PR speak for SOLD!!!

That's what I was going to say. What do I think? I'm not quite sure. Buying a 49% share is a pretty big chunk. I don't know anything about Tesco other than what I have read today. They sound like a big player, and are going global. We all know what happened when Siemens purchased Rapistan: they took a great company and blew it! And usually when a company loses local ownership, then local philanthropy tends to dry up as well. Although Fred Meijer has done an awful lot and will probably set up a foundation to filter money to the community after he passes away.

We'll have to see. There's already a bunch of European ex-patriates in the area now (Bosnians, Germans, Latvians, British) so a few more might be awwigghttt! Boycott? I'm not going to do that (yet).

Share this post


Link to post
Share on other sites

49%. It could actually be a good thing for both. Meijer could use a large (and effective) partner to grow its US operations and Tesco wants to have a partner to help it get a chunk of US sales.

As long as this is pretty much a mutually benficial partnership (as it seems) this could do a lot for Meijer. It could definitely infuse them with a lot of cash that they need to expand.

Share this post


Link to post
Share on other sites

You might be right SuperNOVA. If anyone were to buy Meijer, this might be the best possible outcome. At least it's not someone like Walmart or Target, where there would be so much duplication of stores and services that there would most surely be cuts. It would be cool too if it does go through and Tesco explodes into North America, then Grand Rapids would constantly be in the spotlight as their NA Headquarters (I would imagine). All the news headlines would have a location subheading: Grand Rapids :D

Now Forbes is in the hunt for the story:

http://www.forbes.com/markets/feeds/afx/20...afx2350252.html

Share this post


Link to post
Share on other sites

If Meijer really wanted to expand rapidly they should have bought Kmart. I would guess if the Meijer boys sold it would be to totally exit the business. If that were to happen, it would be great to have an international company

Share this post


Link to post
Share on other sites

i have been fearing a meijer sell off for a while now. but reading up on tesco, the more i feel ok with the deal. this if it stays an equal partnership could give meijer the competitive edge to stave off meijer and target locally, while expanding.

Share this post


Link to post
Share on other sites
If Meijer really wanted to expand rapidly they should have bought Kmart. I would guess if the Meijer boys sold it would be to totally exit the business. If that were to happen, it would be great to have an international company

Share this post


Link to post
Share on other sites

Meijer doesn't have the income to take on Kmart, unfortunately. From what I have heard Tesco is actually a very good company.

I can't believe they offer insurance and financial services too. Check this out:

http://www.tescofinance.com/personal/finance/home.jsp

One thing with having an international company's NA HQ's here would be the chance to lure some of their current European suppliers here, who may want to be near the Mother Ship. Walmart has many of their suppliers setting up shop in Bentonville.

Share this post


Link to post
Share on other sites

I can't believe they offer insurance and financial services too. Check this out:

http://www.tescofinance.com/personal/finance/home.jsp

One thing with having an international company's NA HQ's here would be the chance to lure some of their current European suppliers here, who may want to be near the Mother Ship. Walmart has many of their suppliers setting up shop in Bentonville.

I must admit I would look forward to seeing Meijer under new management. IF anything its what the comapny needs to become more successful.

Share this post


Link to post
Share on other sites

Meijer will still be 51% owned by Meijer. Everyone is calling this a buyout which it is not. It is more like a partnership.

I still see good things from this. One thing Tesco gets is Meijers amazing capability to generate good relations with national suppliers. The one thing that Target and WalMart have never been able to do - they rely on coersion which breeds bad blood. With cash and a strong partner, a well respected brand such as Meijer (the founder of the super center) could excel quickly.

I have always said that the biggest mistake Meijer made was to stay private. If they would have gone public in the 70s, Grand Rapids would be home to a WalMart sized organization. However, the conservative business atmosphere on this side of the State kept them from doing it. Private businesses have advantages - like greater philantrophy and regional pride but they rarely excel when facing well funded public opposition. This seems to be their second chance to break into the national scene and become a challanger again.

They are an innovator, and still are - there is no reason they could not expand rapidly.

Share this post


Link to post
Share on other sites

I imagine the Meijers getting a 4.5 billion instant bank account would not only put them in the spotlight as some of the worlds richest, but would also funnel a great deal more in philanthrophy into the community. The philanthrophy going on now, will benefit our economy for decades to come. That is a plus. I have to say I'd be slightly worried, that under new ownership, Or even going public, that we could have the risk of Meijer being completely relocated. It seems large corporations tend to pick up and move after they have been taken over around here. See, Kmart, and UpJohn. I would hope that if ever bought, the new owners of Meijer would see the benefit of putting in deeper roots here, and perhaps even invest in headquartering themselves downtown. We need more high rises. This could be a good thing.

remain cautiously optimistic.

Share this post


Link to post
Share on other sites

Meijer doesn't have the income to take on Kmart, unfortunately. From what I have heard Tesco is actually a very good company.

I can't find the exact number, but Kmart was purchased for less than the $1B Lampert got selling half of Kmart's stores to Sears and Home Depot. It would have been a bold move, but totally doable. I don't think it would even have been difficult for them to finance. IMO Meijer is run by the same type of gut-less weenies running Ford and GM.

Here's the best article I can come up with.

http://www.chicagotribune.com/business/chi...hi-business-utl

Share this post


Link to post
Share on other sites

I imagine the Meijers getting a 4.5 billion instant bank account would not only put them in the spotlight as some of the worlds richest, but would also funnel a great deal more in philanthrophy into the community. The philanthrophy going on now, will benefit our economy for decades to come. That is a plus. I have to say I'd be slightly worried, that under new ownership, Or even going public, that we could have the risk of Meijer being completely relocated. It seems large corporations tend to pick up and move after they have been taken over around here. See, Kmart, and UpJohn. I would hope that if ever bought, the new owners of Meijer would see the benefit of putting in deeper roots here, and perhaps even invest in headquartering themselves downtown. We need more high rises. This could be a good thing.

remain cautiously optimistic.

I can see Meijer selling, I cant see Meijer moving outside of Michigan. The braintrust is here, and moving somewhere else could hurt more then help.

Share this post


Link to post
Share on other sites

I can see Meijer selling, I cant see Meijer moving outside of Michigan. The braintrust is here, and moving somewhere else could hurt more then help.

Yah, unlike Upjohn as someone mentioned earlier, the braintrust is here. Pfizer took all the best and brightest of Upjohn and relocated them to their New Jersey HQ. Same with KMart, why have two HQ in the Midwest (Troy and Hoffman Estates)? Tesco wouldn't take all the administrative, marketing and finance people and move them to EUROPE. And entire HQ don't generally get up and move themselves, unless there are some serious community relations issues (like Boeing and Seattle).

The more I read, the more I think this will be a good thing. If it goes through, it says a lot that after many years of combing NA to find an "in", they thought Meijer was the best fit. I agree, 49% is not a buyout, but more of a strategic partnership. Although it would probably make them a majority stakeholder.

Share this post


Link to post
Share on other sites

I can see Meijer selling

I can't. Meijer has been fighting off mergers for a long time. Kroger has been interested in buying Meijer for many years.

Why would they be interested in selling now? True, they went through a downsizing administratively in the last couple of years. But, who hasn't really? They've got a new growth plan in place and are aggressively pursuing entering some pretty major markets.

I don't see it happening. But then again, I've been wrong before.

Nitro

Share this post


Link to post
Share on other sites

I just ran into my British neighbors at Meijer (crazy coincidence) and we got to talking about Tesco. They said they LOVE Tesco. Tesco also offers a "bonus points" card, similar to Meijers Community Rewards program, but the "points" go back to YOU every time you swipe the card as a "credit". They probably use it to track people's purchasing habits, but hey, I'll take it!! They said their stores are almost exactly the same as Meijer.

But as Nitro said, it may not even happen :P

BTW: the roads are NASTY and getting worse.

Share this post


Link to post
Share on other sites

I really hope they dont buy out, even though it seems like a really nice store , I would much rather see them buy target or kmart. It would be a shame to see meijer which is a thriving local private company with history and a lot of potential to sell now.

Share this post


Link to post
Share on other sites

I'd like so see miejer go public, they are already fortune 100, if they went public I think they could really run with the big dogs. Then maybe they could build a nice signature office tower downtown.

Share this post


Link to post
Share on other sites

I'd like so see miejer go public, they are already fortune 100, if they went public I think they could really run with the big dogs. Then maybe they could build a nice signature office tower downtown.

yeah I would like to see that too and they would probably be able to expand a lot faster but they dont seem to be at all interested in going public, at least right now

Share this post


Link to post
Share on other sites

I can't. Meijer has been fighting off mergers for a long time. Kroger has been interested in buying Meijer for many years.

Why would they be interested in selling now? True, they went through a downsizing administratively in the last couple of years. But, who hasn't really? They've got a new growth plan in place and are aggressively pursuing entering some pretty major markets.

I don't see it happening. But then again, I've been wrong before.

Nitro

I think the fact that its Tesco, and not an American company makes this more plausible myself. This way everyone they have to deal with is an ocean away, and not a 1 hour flight away :P

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.