U.S.-based investment firm Elliott Advisors has been identified as a potential bidder considering a takeover of The Very Group in a transaction that might value the British online retailer at about a32 billion, equivalent to roughly $2.67 billion.
The Very Group, formerly known as Shop Direct, sells clothing, consumer electronics and home goods, principally through its Very and Littlewoods brands. The reported interest adds to earlier approaches in which the Chinese e-commerce company JD.com was reported to have evaluated a possible a32 billion offer as part of its ambitions in the UK market.
The reported takeover interest arrives after a period of ownership change at The Very Group. U.S.-based private equity firm Carlyle assumed control of the group last year, bringing to a close the Barclay family's approximately 20-year association with the business.
Those named in connection with the reported interest - Elliott, Carlyle and The Very Group - had not provided responses to enquiries at the time the report emerged. The report itself could not be immediately verified.
Financial detail included in the reporting notes an exchange rate of $1 to a30.7486 for the dollar-to-pound conversion applied to the valuation figure.
The situation as described is limited to the reported expressions of interest, the previous indication that JD.com had evaluated a bid, and the prior change in ownership. No confirmed offer or completed transaction has been announced.
Context and potential market implications
- The reported interest brings private equity bidders and global e-commerce players into focus around a major UK online retailer.
- Any acquisition at the reported value would represent a sizable private transaction in the UK retail and e-commerce sectors.
- Ownership history is relevant to the backdrop - Carlyle took control last year after the Barclay family's long association with the business ended.
Given the limited verification available at this stage and the absence of confirmations from the parties named, the developments should be regarded as reports of interest rather than completed corporate action.