"WE GOT a full and fair price for what is a very fine business run by a very fine management team, the chairman of Associated British Foods, Mr Garry Weston, has said.
In an interview with The Irish Times, Mr Weston also said that retaining Penneys and Primark was a deliberate decision. The clothing stores had never formed part of the negotiations with Tesco and there were no plans to sell them off.
"Maybe if somebody came along and offered us a very foolish price for Penneys and Primark, we would have to take a look. But that isn't going to happen and we don't want it to happen. Penneys and Primark were never part of the Quinnsworth and Stewarts business. They are very profitable companies with a good long term future. My responsibility is to make money and any of our companies that make money deserve to be supported, and I will support Penneys.
Retail sources in Dublin, however, greeted Mr Weston's commitment to Penneys and Primark with a degree of scepticism and suggested that ABF would find itself with no shortage of suitors - both from Ireland and from abroad - if it put the clothing chain up for sale.
Mr Weston said he was first approached by Sir Ian McLaurin of Tesco about selling ABF's Irish retailing interests. Events moved slowly at first, but two weeks ago ABF and Tesco got down to serious negotiations, with UBS "crunching the numbers" for Tesco and Lazard Brothers for ABF. Both sides agreed to a two week deadline, with the aim of minimising the possibility of leaks to the press.
"We were aware that Dublin is a very leaky city and that the longer things dragged out, the more chances of things leaking. That's why we put a two week deadline," said Mr Weston, expressing pleasure that it took until last Wednesday for rumours of the talks to begin circulating in the Irish retail trade.
But it was not all plain sailing. Mr Weston was coy when asked whether the talks ever broke down, as was reported by the Financial Times on Thursday. "At various times you have to dig your toes in and at times you stall," was all he would say about the reports of the talks collapsing only to be miraculously reactivated on the following day.
All of Thursday and a large portion of Thursday night were devoted to putting the final touches to the biggest ever takeover involving an Irish based company.
"We've sold our business to a company I have huge respect for and Tesco have given assurances that they will look after the interests of staff and executives" Mr Weston said.
"I'm sure Tesco will tread warily," he added. "To be a retailer you have to make friends and you have to be conscious of your image.