PrivatePrivate andand ConfidentialConfidential -contains- contains businessbusiness secretssecrets DDatate:e 2626 FebruaryFebruary 20182018 RoyaRoyall ChambersChambers Stt Julian'sJulian's AvenueAvenue Stt PeterPeter PortPort GGuernseuernseyGY14HPy GY14HP CChannehannell IslandsIslands TT+44148 +44 74811 723 72346 4666 FF+44148 +44 14811 727 727 935 935 mmourourantozannes.coma ntozannes.com

CCICRICRAA MergerMerger ApplicationApplication FormForm

13.L PreliminaryPreliminary InformationInformation

11..11 ProvideProvide thethe contactcontact detailsdeiails ofof allall parties,parties, includingincluding thethe businessbusiness websitwebsitee aaddresddresss wherwheree applicable.applicable. ForFor corporatecorporate undertakings,undertakings, pleaseplease statestale wherwheree thethe ccompanompanyy isis incorporated.incorporated IfIf anyany ofof thethe partiesparties oror theirtheir parentparent entitiesentities areare listedlisted ccompaniesompanies,, pleaseplease statestate thethe locationslocations ofof listing.listing.

AAcquirercquirer

CCo-operativo-operativee GroupGroup LimitedLimited (CGL):(CGL):

[[RedactpdRedacted]]

CCGGLL isis incorporatedincorporated inin EnglandEngland andand WalesWales

hhttns://wwttps://www.co-operative./w co-ODerative COOD/

CCGGLL whichiA/hich isis acquiringacquiring thethe TargetTarget throughthrougn itsits subsidiarysubsidiary Co-operativeCo-operative GroupGroup HMoldingoldingss (2011)(2013) Limitedlimited (CGH2O11)(CGH2011) (same (same contactcontact detailsdetails asas above).above)

TTargetarget

NNisisaa RetailRetail LimitedLimited (Visa):(Nisa)*

[[RedactedRedacted]]

NNisisaa isis incorporatedincorporated inin EnglandEngland andand WalesWales hhtttps://www.nisaretail.com/t *s: //www. n isa reta 11 .com/

11..22 IfIf anyany partyparty isis partpart ofof a largerlarger corporatecorporate group,group, provideprovide thethe contactcontact detailsdetails forfor tthhee ultimateultimate parentparent entityentity andand statestate wherwheree itit isis incorporated.incorporated.

AAcquirercquirer Parent Entity

NN//AA

TTargetarget Parent Entity

NN//AA

WWORK\30861189YORK\30861189\v.3v 3 1 15762.34215/62.342 CClassificationlassification:: ConfidentialConflaertial 1.31.3 ProvideProvide thethe contactcontact detailsdetails forfor eacheach party'sparty's authorisedauthorised legallegal representative(s).representative(s).

UUKK legallegal representativesrepresentatives

CCGGLL

[[RedactedRedacted]]

NNisisaa

[[RedactedRedacted]]

CChannehannell IslandsIslands legallegal representativesrepresentatives

CCGGLL && NisaNisa

HHeleelenn WyattWyatt MMouranourantt OzannesOzannes 11 LeLe MarchantMarchant StreetStreet SStt PeterPeter PortPort GGuernseuernseyy GGY14HY14HPP [email protected](5)mourantozannes.com ++4444 14811481 731731 408408

11..44 ProvideProvide thethe contactcontact detailsdetails ofof thethe personperson whowho shouldshould receivereceive thethe filingfiling feefee rreceipeceiptt (and(and thethe invoiceinvoice forfor aa feefee forfor aa secondsecond detaileddetailed review).review).

[[RedactedRedacted]]

11..55 IndicateIndicate whetherwhether thethe applicationapplication isis mademade underunder ArticleArticle 2121 ofof thethe CompetitionCompetition ((Jersey)Jersey) LawLaw 20052005 and/orand/or regulationregulation 55 ofof TheThe CompetitionCompetition (Prescribed(Prescribed Mergers aandnd Acquisitions) (Guernsey)(Guernsey) Regulations,Regulations, 2012,2012, andand explainexplain whywhy thethe partiesparties aarree requiredrequired toto seekseek approvalapproval forfor thethe mergermerger underunder thatthat legislation.legislation.

AApplicatiopplicationn isis mademade underunder bothboth ArticleArticle 2121 ofof thethe CompetitionCompetition (Jersey)(Jersey) LawLaw 20052005 aanndd regulationregulation 55 ofof TheThe CompetitionCompetition (Prescribed(Prescribed MergersMergers andand Acquisitions)Acquisitions) ((GuernseyGuernsey)) Regulations,Regulations, 20122012 (the(the GuernseyGuernsey Regulations).Regulations). ThisThis isis furtherfurther toto AArticlrticlee 20(1)20(1) ofof thethe JerseyJersey LawLaw andand SectionSection 1313 ofof thethe GuernseyGuernsey Ordinance,Ordinance, whichwhich iin eacheach casecase provideprovide thatthat aa personperson mustmust notnot executeexecute a mergermerger ofof a typetype pprescriberescribedd eithereither inin anan OrderOrder (in(in thethe casecase ofof thethe JerseyJersey Law)Law) oror byby RegulationRegulation (in(in tthhee casecase ofof thethe GuernseyGuernsey Ordinance)Ordinance) withoutwithout CICRACICRA approval.approval.

JJerseyersey

WWORKV30861189\v.ORK\30861189\v.33 2 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential UnderUnder ArticleArticle 22 ofof thethe CompetitionCompetition (Mergers(Mergers andand Acquisitions)Acquisitions) (Jersey)(Jersey) OrderOrder 22010100 (the(the Order)Order) aa mergermerger willwill requirerequire priorprior approvalapproval wherewhere itit resultsresults inin aa shareshare ooff supplysupply oror purchasepurchase ofof 25%25% oror moremore beingbeing achieved,achieved, oror increasedincreased (the(the HHorizontaorizontall Threshold).Threshold). AsAs thethe partiesparties areare activeactive inin thethe wholesalewholesale supplysupply ofof ggrocerieroceriess inin JerseyJersey andand estimateestimate thatthat theirtheir combinedcombined sharesshares ofof supplysupply oror ppurchasurchasee will,will, followingfollowing thethe acquisitionacquisition satisfysatisfy thethe HorizontalHorizontal Threshold.Threshold.

GGuernseyuernsey

UUndenderr thethe GuernseyGuernsey Regulations,Regulations, thethe thresholdsthresholds forfor determiningdetermining whetherwhether aa mmergeergerr mustmust bebe notifiednotified toto CICRACICRA areare basedbased onon thethe turnoverturnover ofof thethe undertakingsundertakings iinvolvenvolvedd inin thethe merger.merger. InIn thethe previousprevious financialfinancial year,year, CGLCGL hadhad salessales inin GuernseyGuernsey ooff [over[over £2£2 million]million] andand NisaNisa hadhad salessales inin GuernseyGuernsey ofof [over[over f2£2 million],million], [with[with ccombineombinedd salessales ofof overover f5£5 million].million]. TheThe partiesparties thereforetherefore considerconsider thatthat thesethese tturnoverurnoverss exceedexceed thethe prescribedprescribed thresholds.thresholds. ThereforeTherefore thethe acquisitionacquisition willwill needneed ttoo bebe notifiednotified toto CICRACICRA pursuantpursuant toto RegulationRegulation 11 ofof thethe GuernseyGuernsey Regulations.Regulations.

JJerseyersey andand GuernseyGuernsey

DDespitespitee thethe factfact thatthat thethe acquisitionacquisition isis aa notifiablenotifiable transactiontransaction inin bothboth JerseyJersey andand GGuernseyuernsey,, thethe partiesparties dodo notnot believebelieve thatthat thethe acquisitionacquisition willwill leadlead toto aa substantialsubstantial llesseninesseningg ofof competitioncompetition inin eithereither JerseyJersey oror GuernseyGuernsey (as(as furtherfurther explainedexplained atat ssectioectionn 4).4).

11..55 IndicateIndicate whetherwhether thethe partiesparties areare makingmaking aa jointjoint application.application.

CCGGLL andand NisaNisa areare makingmaking aa jointjoint application.application.

11..66 WhatWhat isis thethe expectedexpected timescaletimescale forfor exchangeexchange ofof contractscontracts andand completioncompletion ofof tthhee merger?merger?

NNisisaa isis beingbeing acquiredacquired byby CGCGL' L'ss subsidiarysubsidiary CGH2O11CGH2011 pursuantpursuant toto aa courtcourt ssanctioneanctionedd schemescheme ofof arrangementarrangement underunder thethe UKUK CompaniesCompanies ActAct 20062006 (the(the PProposeroposedd Transaction).Transaction). [Redacted][Redacted] TheThe ProposedProposed TransactionTransaction waswas approvedapproved byby ooveverr 75%75% ofof Nisa'sNisa's shareholdersshareholders11 onon 1010 NovemberNovember 2017.2017

TThhee PartiesParties areare aimingaiming toto completecomplete thethe ProposedProposed TransactionTransaction [Redacted].[Redacted], CCompletioompletionn isis subjectsubject toto thethe satisfactionsatisfaction ofof certaincertain conditionsconditions setset outout inin thethe SSchemchemee DocumentsDocuments including,including, amongstamongst otherother things,things, mergermerger approvalapproval fromfrom bothboth CCICRICRAA andand thethe CompetitionCompetition andand MarketsMarkets AuthorityAuthority inin thethe UKUK (the(the CMA)CMA) andand anan oorderderr fromfrom thethe HighHigh CourtCourt ofof JusticeJustice inin EnglandEngland andand WalesWales sanctioningsanctioning thethe PProposeroposedd Transaction.Transaction.

1 NisaNisa refersrefers toto itsits shareholdersshareholders asas "members"."members".

WWORK\3Q861189\v.ORK\30861189\v.33 33 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 1.71.7 IndicateIndicate whetherwhether anyany ofof thethe partiesparties oror theirtheir parentparent entitiesentities hashas previouslypreviously rreceiveeceivedd mergermerger approvalapproval inin GuernseyGuernsey oror Jersey.Jersey.

NNeitheeitherr CGLCGL nornor CGH2O11CGH2011 hashas previouslypreviously receivedreceived mergermerger approvalapproval inin GuernseyGuernsey oorr Jersey.Jersey.

NNisisaa hashas notnot previouslypreviously receivedreceived mergermerger approvalapproval inin GuernseyGuernsey oror Jersey.Jersey.

11..88 ListList anyany otherother competitioncompetition authoritiesauthorities toto whomwhom thethe mergermerger hashas beenbeen notified.notified.

TThhee ProposedProposed TransactionTransaction isis alsoalso beingbeing notifiednotified toto thethe CMA.CMA. TheThe CMACMA aannouncennouncedd thethe launchlaunch ofof itsits PhasePhase 11 mergermerger enquiryenquiry onon 2222 FebruaryFebruary 2018.2018.22

11..99 ListList anyany otherother regulatoryregulatory body,body, whetherwhether inin GuernseyGuernsey oror JerseyJersey oror elsewhere,elsewhere, tthahatt hashas beenbeen notifiednotified oror willwill bebe notifiednotified ofof thethe merger.merger. PleasePlease describedescribe anyany ppre-completiore-completionn requirementsrequirements thatthat havehave beenbeen imposedimposed andand thethe expectedexpected ssatisfactioatisfactionn datedate ofof anyany suchsuch requirements.requirements.

NNoo notificationnotification hashas beenbeen mademade toto anyany otherother regulatoryregulatory bodybody inin Guernsey,Guernsey, JerseyJersey oorr elsewhereelsewhere (with(with thethe exceptionexception ofof thethe CMA,CMA, asas perper paragraphparagraph 1.81.8 above)above) butbut asas tthhee ProposedProposed TransactionTransaction isis byby wayway ofof aa courtcourt sanctionedsanctioned schemescheme ofof aarrangementrrangement,, anan orderorder fromfrom thethe HighHigh CourtCourt ofof JusticeJustice inin EnglandEngland andand WalesWales ssanctioninanctioningg thethe ProposedProposed TransactionTransaction mustmust bebe obtainedobtained beforebefore thethe ProposedProposed TTransactioransactionn cancan complete.complete. ThisThis willwill taketake placeplace withinwithin 1414 daysdays ofof mergermerger cclearanclearancee beingbeing grantedgranted byby thethe CMACMA andand CICRA.CICRA.

22 DescriptionDescription ofof thethe MergerMerger

PProvidrovidee anan executiveexecutive summarysummary ofof thethe merger,merger, describingdescribing thethe partiesparties involvedinvolved aanndd theirtheir areasareas ofof activity,activity, aa briefbrief descriptiondescription ofof thethe business/esbusiness/es beingbeing acquiredacquired aanndd theirtheir areasareas ofof activity,activity, thethe reasonsreasons forfor thethe mergermerger andand thethe naturenature ofof thethe ttransactioransactionn (i.e.(i.e. statutorystatutory merger,merger, shareshare oror assetasset acquisition,acquisition, jointjoint venture,venture, ppubliublicc offer).offer).

EExecutivexecutive SummarySummary

NNeitheeitherr CGLCGL nornor NisaNisa havehave anyany presencepresence inin thethe grocerygrocery retailretail marketmarket inin JerseyJersey oror GGuernseyuernsey.. AsAs explainedexplained furtherfurther below,below, CGLCGL providesprovides wholesalewholesale grocerygrocery suppliessupplies tto thethe ChannelChannel IslandsIslands Co-operativeCo-operative SocietySociety (CI(CI Co-op)Co-op) throughthrough aa buyingbuying groupgroup aarrangemenrrangementt knownknown asas thethe FederalFederal RetailRetail TradingTrading ServicesServices (FRTS)(FRTS) [Redacted].[Redacted], NNisisaa providesprovides wholesalewholesale grocerygrocery suppliessupplies toto aa limitedlimited numbernumber ofof customerscustomers inin tthhee ChannelChannel Islands,Islands, includingincluding SandpiperSandpiper CICI LtdLtd (Sandpiper(Sandpiper CI)CI) [Redacted].[Redacted].

z2 htt~s://www.Qov.uk/cma-cases/co-operative-group-nisa--merger-inauiryhttps://www.aov.uk/cma-cases/co-ODerative-Qroup-nisa-retail-meraer-inauirv

WWQRK\30861189W.ORK\30861189\v.33 44 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential However,However, SandpiperSandpiper CIC I recentlyrecently announcedannounced thatthat itit hadhad enteredentered intointo aa long long term term ffranchisranchisee andand wholesalewholesale supplysupply agreementagreement withwith MorrisonsMorrisons33 [Redacted][Redacted] SSandpipeandpiperr CIC I hashas saidsaid thethe intentionintention isis forfor mostmost ofof itsits minimini--supermarketss toto bebe rrebrandeebrandedd intointo ''Morrisons Daily'Daily' storesstores wherewhere MorrisonsMorrisons ownown-bran-brandd productsproducts wwilill l bebe suppliedsupplied alongsidealongside brandedbranded products.products. ItIt isis alsoalso worthworth notingnoting thatthat eveneven hhistoricallistoricallyy NisaNisa waswas notnot SandpiperSandpiper CI'sCI's exclusiveexclusive suppliersupplier asas itit hadhad alsoalso hadhad otherother wwholesalholesalee supplysupply relationshipsrelationships inin placeplace withwith otherother wholesalerswholesalers inin GuernseyGuernsey andand JJerseerseyy including,including, for for example,example, MarksMarks &Spencer,& Spencer, IcelandIceland andand .Waitrose.

AAtt thethe wholesalewholesale level,level, thethe PartiesParties considerconsider itit unlikelyunlikely thatthat thethe ProposedProposed TTransactioransactionn wouldwould reducereduce thethe numbernumber ofof grocerygrocery wholesalerwholesaler optionsoptions availableavailable toto ggrocerroceryy retailersretailers inin GuernseyGuernsey andand Jersey.Jersey. AsAs explainedexplained furtherfurther below,below, thisthis isis bbecausecausee prepre-merger-merger,, CGLCGL wouldwould notnot bebe availableavailable asas aa wholesalewholesale suppliersupplier toto non-non- FTRSFTRS membermember stores.stores.

[[RedactedRedacted]] Further,Further, therethere isis nono intentionintention byby CGCGL L,, postpost-merger-merger,, toto restrictrestrict Nisa'sNisa's oofferinfferingg toto existingexisting customers,customers, reducereduce itsits existingexisting customercustomer basebase oror vvary/terminatary/terminatee anyany existingexisting contractscontracts inin thethe ChannelChannel Islands.Islands. AsAs aa result,result, thethe PProposeroposedd TransactionTransaction shouldshould notnot havehave anyany directdirect effecteffect inin thethe marketmarket forfor thethe wwholesalholesalee supplysupply ofof groceries.groceries.

IInn anyany event,event, thethe wholesalewholesale grocerygrocery marketmarket inin GuernseyGuernsey andand JerseyJersey currentlycurrently iincludencludess aa numbernumber ofof majormajor activeactive playersplayers asas wellwell asas aa numbernumber ofof otherother smallersmaller oorr independentindependent wholesalerswholesalers thatthat couldcould provideprovide crediblecredible alternativesalternatives toto grocerygrocery rretaileretailerss inin thethe eventevent ofof aa decreaseddecreased levellevel ofof serviceservice oror anan increaseincrease inin wholesalewholesale ppricericess fromfrom thethe mergedmerged partiesparties followingfollowing thethe ProposedProposed Transaction.Transaction.

TThereforeherefore,, existingexisting competitioncompetition inin thethe relevantrelevant marketsmarkets isis alreadyalready sufficientlysufficiently sstrontrongg toto ensureensure thatthat thethe ProposedProposed TransactionTransaction wouldwould notnot enableenable thethe partiesparties toto pprofitablrofitablyy increaseincrease pricesprices oror reducereduce serviceservice forfor grocerygrocery retailersretailers and,and, inin turn,turn, cconsumersonsumers..

TThehe PartiesParties InvolvedInvolved

C~~l:i~~~7~~~CGH2011

11.. CGH2O11CGH2011 isis aa [Redacted] [Redacted]44 subsidiarysubsidiary ofof CGLCGL[Redacted]. [Redacted].

3 3 SandpiperSandpiper CI'sCI's presspress releaserelease -- http://www.sandpiperci.com/news/morrisons-to-become-sand~i~er-s-http://www.sandDiDerci.com/news/morrisons-to-become-sandDiDer-s- franchise-and-wholesale-suooly-partnerfranchise-and-wholesale-suDDlv-partner andand Morrisons'Morrisons' presspress releaserelease -- https://www.morrisons-https://www.morrisons- corporate.com/media-centre/corporate-news/morrisons-announces-new-agreement-with-sandpiper/corporate.com/media-centre/corporate-news/morrisons-announces-new-agreement-with-sandpiper/ 4 4 [Redacted][Redacted]

WWORK\3Q861189\v.ORK\30861189\v.33 55 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 2.2. CGLCGL intendsintends toto acquireacquire 100%100% ofof thethe sharesshares inin NisaNisa indirectlyindirectly throughthrough CCGH201GH2O111 pursuantpursuant toto aa courtcourt sanctionedsanctioned schemescheme ofof arrangement.arrangement. [[RedactedRedacted]]

C~L~]!CGL

11.. CGLCGL isis aa registeredregistered societysociety ownedowned byby circacirca eighteight millionmillion members.members.

22.. CGL'sCGL's totaltotal revenuerevenue acrossacross thethe UKUK forfor 20162016 waswas f9.5£9.5 billion,billion, ofof whichwhich £7.1£7.1 bbillioillionn waswas fromfrom foodfood sales.sales.

33. CGLCGL isis activeactive inin aa rangerange ofof activitiesactivities includingincluding grocerygrocery retailing,retailing, insurance,insurance, ffuneraunerall carecare andand legallegal services.services.

44.. OfOf particularparticular relevancerelevance toto thisthis applicationapplication andand CGL'sCGL's activitiesactivities inin thethe CChannehannell Islands:Islands:

aa.. GroceryGrocery (Retail):(Retail): CGLCGL andand itsits whollywholly ownedowned subsidiariessubsidiaries ownown andand ooperatperatee [Redacted][Redacted] grocerygrocery retailretail storesstores acrossacross thethe UKUK underunder thethe Co-Co- opop fascia.fascia. However,However, itit doesdoes notnot ownown oror operateoperate anyany grocerygrocery retailretail sstoretoress inin thethe ChannelChannel Islands;Islands; andand

bb.. GroceryGrocery (Wholesale):(Wholesale):

i.i. CGLCGL isis aa membermember ofof thethe buyingbuying groupgroup knownknown asas thethe FederalFederal RRetaietaill TradingTrading ServicesServices (FRTS).(FRTS). [Redacted][Redacted]

iiii.. [Redacted][Redacted]

iiiiii.. InIn thethe ChannelChannel Islands,Islands, CGLCGL providesprovides grocerygrocery productsproducts toto TheThe CChannehannell IslandsIslands Co-operativeCo-operative SocietySociety LimitedLimited (CI(CI Co-op)Co-op) uundenderr thethe FRTSFRTS arrangementarrangement referredreferred toto above.above. WhilstWhilst bothboth aarree involvedinvolved inin thethe FRTSFRTS itit shouldshould bebe notednoted thatthat CGLCGL andand thethe CCII Co-opCo-op areare independentindependent organisationsorganisations [Redacted].[Redacted],

iivv.. [Redacted][Redacted]

NNisisaa

11.. NisaNisa isis aa mutualmutual companycompany ownedowned byby itsits [over[over 1000]1000] shareholders.shareholders.

22.. InIn contrastcontrast toto CGL,CGL, NisaNisa itselfitself isis notnot aa retailer.retailer.

WWQRK\30861189\v,ORK\30861189\v.33 66 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 3.3. Nisa'sNisa's principalprincipal activitiesactivities areare thethe wholesalewholesale supplysupply ofof grocerygrocery productsproducts aanndd thethe provisionprovision ofof symbolsymbol groupgroup servicesservices toto itsits shareholdersshareholders tthroughouhroughoutt thethe UK.UK.

44., Collectively,Collectively, Nisa'sNisa's shareholdersshareholders operateoperate [Redacted][Redacted] storesstores [Redacted].[Redacted], NNisisaa itselfitself doesdoes notnot ownown oror operateoperate anyany ofof thesethese stores.stores. TheseThese grocerygrocery sstoretoress cancan bebe brokenbroken downdown furtherfurther intointo thethe followingfollowing categories:categories:

i. IndependentIndependent retailersretailers (around (around [Redacted] [Redacted] stores);stores);

ii.ii. MultiMulti-sit-sitee retailersretailers (such (such asas [Redacted]); [Redacted]); andand

iiiiii.. SymbolSymbol groupgroup (around(around [Redacted][Redacted] stores)stores) underunder thethe ffollowinollowingg fascia:fascia: - NisaNisa Extra:Extra: supermarketssupermarkets oror oneone stopstop stores;stores; - NisaNisa Local:Local: convenienceconvenience stores;stores; andand - Loco:Loco: smallsmall stores.stores.

55.. InIn thethe ChannelChannel Islands,Islands, NisaNisa hashas aa wholesalewholesale grocerygrocery supplysupply agreementagreement wwitithh SandpiperSandpiper CICI [Redacted].[Redacted]. NisaNisa doesdoes notnot havehave anyany symbolsymbol storesstores inin tthhee ChannelChannel Islands.Islands. SandpiperSandpiper CICI purchasespurchases productsproducts fromfrom aa numbernumber ofof oothetherr sourcessources includingincluding Waitrose,Waitrose, MarksMarks &Spencer& Spencer andand .Iceland. NisaNisa eestimatestimatess thatthat [a[a highhigh proportion]proportion] ofof SandpiperSandpiper CI'sCI's purchasespurchases inin thethe ffinanciainanciall yearyear endingending 22 AprilApril 20172017 werewere fromfrom sourcessources otherother thanthan Nisa.Nisa. AAss notednoted above,above, SandpiperSandpiper CICI hashas recentlyrecently announcedannounced aa newnew wholesalewholesale aanndd franchisefranchise agreementagreement withwith MorrisonsMorrisons [Redacted].[Redacted].

66.. NisaNisa alsoalso providesprovides wholesalewholesale grocerygrocery suppliessupplies toto aa smallsmall numbernumber ofof oothetherr businessesbusinesses (both(both retailretail andand wholesale)wholesale) inin thethe ChannelChannel IslandsIslands uundenderr itsits standardstandard TermsTerms andand Conditions.Conditions.

7. [Redacted][Redacted]

RReasonseasons forfor thethe merger

CCGL'GL'ss foodfood strategystrategy isis toto bebe thethe leadingleading convenienceconvenience retailerretailer inin thethe UK.UK. ToTo ddeliveeliverr thatthat strategy,strategy, CGLCGL needsneeds toto growgrow scalescale throughthrough wholesalewholesale andand franchisefranchise cchannelshannels.. ThatThat needneed isis eveneven moremore evidentevident inin lightlight ofof /BookerTesco/Booker andand likelylikely ffurtheurtherr consolidationconsolidation inin thethe grocerygrocery sector.sector. [Redacted][Redacted]

NNisisaa hashas aa mutualmutual history,history, asas wellwell asas aa communitycommunity andand charitycharity focusedfocused ethos,ethos, tthahatt isis alignedaligned toto thatthat ofof CGLCGL andand thereforetherefore isis aa goodgood fitfit forfor CGL.CGL.

[[RedactedRedacted]]

WWORK\3C)861189W.ORK\30861189\v.33 77 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential EconomicEconomic BenefitsBenefits

[[RedactedRedacted]]

NNatureature ofof thethe ProposedProposed TransactionTransaction

TThhee ProposedProposed TransactionTransaction isis toto bebe effectedeffected byby wayway ofof aa courtcourt sanctionedsanctioned sschemchemee ofof arrangementarrangement betweenbetween NisaNisa andand CGLCGL throughthrough CGH2O11.CGH2011. TheThe PProposeroposedd TransactionTransaction waswas approvedapproved byby aa majoritymajority ofof overover 75%75% ofof shareholdersshareholders ooff NisaNisa onon 1313 NovemberNovember 2017,2017, andand asas notednoted above,above, thethe ProposedProposed TransactionTransaction wwililll now,now, subjectsubject toto thethe satisfactionsatisfaction ofof certaincertain conditionsconditions (including(including mergermerger aapprovapprovall fromfrom bothboth CICRACICRA andand thethe CMA),CMA), needneed toto bebe sanctionedsanctioned byby thethe HighHigh CCourourtt ofof EnglandEngland andand WalesWales beforebefore itit cancan bebe completed.completed.

22..11 IndicateIndicate whetherwhether thethe mergermerger involvesinvolves thethe wholewhole ofof thethe partiesparties involved,involved, oror wwhethehetherr somesome divisionsdivisions oror subsidiariessubsidiaries ofof thethe partiesparties areare notnot involvedinvolved inin thethe mmergererger..

TThhee ProposedProposed TransactionTransaction involvesinvolves thethe wholewhole ofof thethe partiesparties involved.involved.

22..22 ProvideProvide aa diagramdiagram showingshowing thethe structurestructure ofof thethe partiesparties involvedinvolved (including(including anyany ccompanieompaniess whichwhich havehave ultimateultimate controlcontrol ofof thethe partiesparties toto thethe merger)merger) beforebefore aanndd afterafter completioncompletion ofof thethe merger.merger.

DDiagramiagramss showingshowing thethe ownershipownership structurestructure ofof CGL'sCGL's groupgroup andand Nisa'sNisa's groupgroup bothboth pprree andand postpost completioncompletion ofof thethe ProposedProposed TransactionTransaction [have[have beenbeen providedprovided toto CCICRICRAA onon aa confidentialconfidential basis].basis].

[[RedactedRedacted]]

22..33 ProvideProvide detailsdetails ofof anyany ancillaryancillary arrangementsarrangements betweenbetween thethe partiesparties oror theirtheir pparenarentt entitiesentities thatthat youyou believebelieve areare directlydirectly relatedrelated andand necessarynecessary toto iimplemenmplementt thethe merger.merger.

NN//AA

22..44 ProvideProvide aa copycopy ofof thethe agreementagreement betweenbetween thethe partiesparties effectingeffecting thethe mergermerger (if(if aavailable)vailable),, andand allall ancillaryancillary agreements.agreements.

TThhee SchemeScheme DocumentsDocuments areare includedincluded atat AppendixAppendix 3.3.

22..55 ProvideProvide copiescopies ofof allall internalinternal and/orand/or externalexternal studies,studies, analyses,analyses, reports,reports, andand ssurveyurveyss preparedprepared byby oror forfor anyany ofof thethe partiesparties forfor thethe purposepurpose ofof assessingassessing oror aanalysinnalysingg thethe benefitsbenefits oror effectseffects ofof thethe mergermerger onon markets,markets, marketmarket shares,shares, ccompetitionompetition,, competitors,competitors, potentialpotential forfor salessales growthgrowth oror expansionexpansion intointo newnew mmarketsarkets,, andand indicateindicate (if(if notnot otherwiseotherwise containedcontained inin thethe documentdocument itself)itself) thethe

WWORK\3C)861189\v.ORK\30861189\v.33 88 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential datedate ofof preparation,preparation, andand thethe namename andand titletitle ofof thethe principalprincipal personperson whowho ppreparereparedd eacheach document.document. ThisThis includesincludes anyany documentsdocuments submittedsubmitted toto oror ppreparereparedd forfor anyany member/smember/s ofof thethe boardboard ofof directorsdirectors and/orand/or thethe shareholders'shareholders' mmeetineetingg for for thethe purposespurposes ofof assessingassessing and and analysinganalysing the the merger.merger.

TThhee Parties'Parties' internalinternal documentsdocuments dodo notnot relaterelate specificallyspecifically toto thethe ChannelChannel Islands.Islands. HHoweverowever,, [CICRA[CICRA havehave beenbeen providedprovided withwith thethe Parties']Parties'] documentsdocuments [on[on aa cconfidentiaonfidentiall basis]:basis]:

[[RedactedRedacted]]

22..66 IfIf thethe proposedproposed transactiontransaction isis aa publicpublic bid,bid, provideprovide aa copycopy ofof thethe OfferOffer DDocumenocumentt andand ListingListing Particulars.Particulars.

NN//AA

22..77 ProvideProvide aa copycopy ofof anyany presspress releaserelease (including(including thosethose inin specialistspecialist oror tradingtrading jjournalsournals)) announcingannouncing thethe mergermerger andand detailsdetails ofof anyany officialofficial notificationsnotifications toto sstoctockk exchanges.exchanges.

C~~LCGL

hhttps://www.co-operative.coop/media/news-releasesttps://www.co-operative.coop/media/news-releases/nisa-board-recommends-/nisa-board-recommends- co-op-group-offer-to-nisa-membersco-op-group-offer-to-nisa-members

hhttps://www.co-operative.coop/media/news-releases/nisa-retail-members-votettps://www.co-operative.coop/media/news-releases/nisa-retail-members-vote-- i in-favour-of-co-op-group-offen-favour-of-co-o p-pro u p-offe rr

NNisisaa

hhttp://corporate.nisaretail.com/press-office/nisa-retail-members-vote-in-favourttp://corporate.nisaretail.com/press-office/nisa-retail-members-vote-in-favour-- of-co-oof-co-op-group-offer-to-nisa-member p-pro u p-offe r-to-n i sa -memberss

33 DetailsDetails ofof thethe PartiesParties

33..11 SpecifySpecify thethe industries,industries, inin GuernseyGuernsey and/orand/or JerseyJersey andand abroad,abroad, inin whichwhich thethe ppartieartiess toto thethe merger,merger, or,or, ifif different,different, theirtheir corporatecorporate groups,groups, areare active.active.

CCGGLL

1. InIn thethe ChannelChannel Islands,Islands, CGLCGL wholesaleswholesales grocerygrocery productsproducts toto CICI Co-opCo-op underunder thethe FFRTRTSS arrangementarrangement referredreferred toto above.above. WhilstWhilst bothboth areare involvedinvolved inin thethe FRTS,FRTS, itit sshoulhouldd bebe notednoted thatthat CGLCGL andand thethe CICI Co-opCo-op areare independentindependent organisations.organisations. CGLCGL ddoeoess notnot operateoperate anyany retailretail storesstores inin thethe ChannelChannel Islands.Islands.

WWQRK\30861189\v.ORK\30861189\v.33 99 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 2.2. InIn thethe UK,UK, CGLCGL isis activeactive inin aa rangerange ofof activitiesactivities includingincluding grocerygrocery wholesalingwholesaling andand rretailingetailing,, insurance,insurance, funeralfuneral carecare andand legallegal services.services.

NNisisaa

33.. InIn thethe ChannelChannel Islands,Islands, NisaNisa suppliessupplies wholesalewholesale grocerygrocery productsproducts toto aa smallsmall nnumbeumberr ofof retailersretailers andand wholesalers.wholesalers. [Redacted].[Redacted]. NisaNisa doesdoes notnot operateoperate anyany retailretail sstoretoress inin thethe ChannelChannel Islands.Islands.

44.. InIn thethe UKUK andand Ireland,Ireland, Nisa'sNisa's principalprincipal activitiesactivities areare thethe wholesalewholesale supplysupply ofof ggrocerroceryy productsproducts andand thethe provisionprovision ofof symbolsymbol groupgroup servicesservices toto itsits shareholders.shareholders.

33..22 ProvideProvide thethe turnoverturnover forfor eacheach partyparty involvedinvolved inin thethe mergermerger and,and, ifif different,different, ttheiheirr corporatecorporate groups,groups, (i)(i) worldwide,worldwide, (ii)(ii) inin GuernseyGuernsey andand (iii)(iii) inin Jersey,Jersey, forfor thethe llasastt financialfinancial yearyear forfor whichwhich suchsuch informationinformation isis availableavailable andand forfor anyany availableavailable iinterinterimm periodperiod inin thethe currentcurrent year.year.

aa)) CGLCGL hashas providedprovided turnoverturnover figuresfigures forfor itsits financialfinancial yearyear endingending inin 20162016 aass 20172017 figuresfigures areare notnot yetyet available.available.

bb)) NisaNisa hashas providedprovided turnoverturnover figuresfigures turnoverturnover figuresfigures forfor itsits financialfinancial yyeaearr endingending 22 AprilApril 2017.2017.

TTurnoveurnoverr inin CGLCGLS5 NisaNisa AggregateAggregate BBritisritishh PoundsPounds SSterlinterlingg(£) (£)

GGuernseuernseyy [Redacted][Redacted] [Redacted][Redacted] [Redacted][Redacted] tturnoverurnover::

JJerseerseyy turnover:turnover: [Redacted][Redacted] [Redacted][Redacted] [Redacted][Redacted]

WWorld-widorld-widee 9,500,000,0009,500,000,000 1,251,657,0001,251,657,000 10,751,657,00010,751,657,000 tturnoverurnover::

33..33 ProvideProvide copiescopies ofof thethe mostmost recentrecent annualannual reports,reports, oror (if(if nono annualannual reportsreports areare aavailablevailable)) thethe mostmost recentrecent auditedaudited financialfinancial statements,statements, ofof thethe partiesparties toto thethe mmergeergerr and,and, ifif different,different, theirtheir corporatecorporate groups.groups.

CCGGLL

55 [Redacted][Redacted]

WWORK\3Q861189\v.ORK\30861189\v.33 1010 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential https://assets.contentful.com/Svwmg66472ir/2smNzLOuyoUsQKMWueuuwW/ehttps://assets.contentful.eom/5vwmq66472ir/2smNzL0uyoUsQKMWueuuwW/e 7769409c38659291329cellc437154d0/Coo69409c38659291329ce11c437154d0/Coopp AnnualAnnual ReportReport 2016.pdf2016.pdf

NNisisaa

AAnnuannuall reportreport andand accountsaccounts forfor yearyear endedended 22 AprilApril 20172017 [are[are availableavailable onon CCompanieompaniess House].House],

44 EffectsEffects onon CompetitionCompetition

44..11 SpecifySpecify eacheach categorycategory ofof goodgood oror serviceservice produced,produced, supplied,supplied, distributeddistributed oror ootherwistherwisee soldsold inin GuernseyGuernsey and/orand/or JerseyJersey duringduring thethe previousprevious twotwo yearsyears byby eeacachh partyparty involvedinvolved inin thethe mergermerger andand provideprovide eacheach party'sparty's salessales inin GuernseyGuernsey aand/ond/orr JerseyJersey forfor eacheach categorycategory listed.listed.

CCGGLL

TThhee wholesalewholesale supplysupply ofof groceriesgroceries toto CICI Co-opCo-op (who(who operateoperate 2525 storesstores acrossacross GGuernseuernseyy andand Jersey)Jersey) accountsaccounts forfor CGCGL' L'ss entireentire turnoverturnover inin GuernseyGuernsey andand JerseyJersey [[Redacted]Redacted]..

NNisisaa

TThhee wholesalewholesale supplysupply ofof groceriesgroceries toto [a[a numbernumber of]of] differentdifferent retailersretailers andand wwholesalerholesalerss inin GuernseyGuernsey andand JerseyJersey (including(including SandpiperSandpiper CICI whowho operatesoperates 3838 sstoretoress acrossacross GuernseyGuernsey andand Jersey)Jersey)66,, whichwhich togethertogether accountsaccounts forfor Nisa'sNisa's turnoverturnover iinn GuernseyGuernsey andand JerseyJersey [Redacted].[Redacted]. TheseThese customerscustomers areare listedlisted belowbelow withwith theirtheir vvalualuee toto NisaNisa inin itsits lastlast financialfinancial year.year.

CCustomeustomerr ValueValue (£)(£) TypeType ofof customercustomer

[[RedactedRedacted]] [Redacted][Redacted] [Redacted][Redacted]

44..22 WithWith referencereference toto CICRACICRA GuidelineGuideline 77 -Market- Market Definition,Definition, explainexplain whatwhat youyou cconsideonsiderr toto bebe thethe economiceconomic markets)market(s) forfor thethe purposepurpose ofof assessingassessing thethe ccompetitioompetitionn effectseffects ofof thethe merger,merger, givinggiving reasons.reasons. MarketsMarkets shouldshould bebe defineddefined iin termsterms ofof (i)(i) product;product; andand (ii)(ii) geography.geography.

6 6 [Redacted][Redacted]

WWQRK\30861189\v.ORK\30861189\v.33 1111 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential i.i. RelevantRelevant productproduct market:market:

WWholesaleholesale SupplySupply ofof GroceriesGroceries

AAss setset outout above,above, bothboth PartiesParties areare activeactive inin thethe wholesalewholesale supplysupply ofof ggroceriesroceries,, withwith CGLCGL providingproviding grocerygrocery productsproducts toto CICI Co-opCo-op underunder thethe FFRTRTSS arrangementsarrangements andand NisaNisa providingproviding grocerygrocery productsproducts toto aa smallsmall nnumbeumberr ofof retailersretailers andand wholesalers.wholesalers.

FFoorr thethe purposepurpose ofof thisthis application,application, thethe PartiesParties submitsubmit thatthat thethe relevantrelevant pproducroductt marketmarket maymay bebe consideredconsidered asas thethe wholesalewholesale supplysupply ofof groceriesgroceries bbaseasedd onon thethe previousprevious decisionaldecisional practicepractice ofof CICRACICRA andand thethe CMA.CMA.

TThhee UKUK CompetitionCompetition CommissionCommission (the(the predecessorpredecessor toto thethe CMACMA inin thethe UK)UK) hhaass previouslypreviously consideredconsidered whetherwhether thisthis marketmarket shouldshould bebe furtherfurther ssegmenteegmentedd onon aa productproduct basisbasis betweenbetween grocerygrocery productsproducts (i.e.(i.e. meat,meat, ccanneannedd goodsgoods andand alcoholicalcoholic products)products) andand relatedrelated nonnon-grocer-groceryy productsproducts ((i.ei.e.. disposabledisposable cutlerycutlery andand cleaningcleaning equipment).equipment). However,However, asas customerscustomers wwililll oftenoften sourcesource thesethese productsproducts fromfrom thethe samesame supplier,supplier, thethe CMACMA cconcludeoncludedd thatthat thethe marketmarket shouldshould notnot bebe segmentedsegmented inin thisthis way.'way.7 TheThe PPartieartiess considerconsider thatthat thethe samesame reasoningreasoning appliesapplies inin thisthis instance,instance, asas ccustomerustomerss cancan obtainobtain aa fullfull rangerange ofof grocerygrocery andand nonnon-grocer-groceryy productsproducts ffroromm thethe PartiesParties inin thethe samesame order.order.

TThhee UKUK CompetitionCompetition CommissionCommission hashas alsoalso previouslypreviously consideredconsidered fivefive wwholesalholesalee supplysupply channelschannels forfor grocerygrocery retailers,retailers, inin additionaddition toto retailersretailers ppurchasinurchasingg directlydirectly fromfrom suppliers:suppliers: (i)(i) cashcash andand carrycarry wholesale;wholesale; (ii)(ii) ddelivereeliveredd wholesale;wholesale; (iii)(iii) specialistspecialist wholesale;wholesale; (iv)(iv) symbolsymbol groups;groups; andand (v)(v) bbuyinuyingg groups.groups.$8 TheThe PartiesParties submitsubmit thatthat inin thisthis instanceinstance itit isis notnot necessarynecessary tto furtherfurther subsub-divid-dividee thethe productproduct marketmarket byby supplysupply channelchannel givengiven thatthat ttherheree wouldwould bebe nono competitioncompetition concernsconcerns onon thethe basisbasis ofof aa widerwider oror nnarroarroww productproduct market.market.

TThhee PartiesParties furtherfurther submitsubmit thatthat thethe marketmarket shouldshould notnot bebe subsub-divide-dividedd byby ttypypee ofof customer.customer. [Redacted][Redacted]

TThereforeherefore,, forfor thethe purposespurposes ofof thisthis application,application, thethe PartiesParties submitsubmit thatthat tthhee relevantrelevant productproduct marketmarket shouldshould bebe consideredconsidered asas thethe wholesalewholesale ssupplupplyy ofof groceries.groceries.

7 PParagrapharagraphss 7.87.8 toto 7.147.14 ofof BookerBooker GroupGroup PlcPic // MakroMakro HoldingsHoldings LimitedLimited Report,Report, 1919 AprilApril 2013.2013. 88 BookerBooker GroupGroup PlcPic // MakroMakro HoldingsHoldings LimitedLimited Report,Report, 1919 AprilApril 20132013 andand paragraphparagraph 6.376.37 ofof TescoTesco /Booker/ Booker ffinainall report,report, 2020 DecemberDecember 2017.2017.

WWQRK\30861189W.ORK\30861189\v.33 1212 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential ii.ii. RelevantRelevant geographicgeographic marketmarket

GGuernseyuernsey andand JerseyJersey

WWhilshilstt CICRACICRA consideredconsidered GuernseyGuernsey andand JerseyJersey asas separateseparate geographicgeographic mmarketarketss forfor thethe purposepurpose ofof assessmentassessment inin itsits reportreport onon thethe grocerygrocery retailretail mmarkearkett inin thethe ChannelChannel IslandsIslands99 thethe authorityauthority hashas notnot offeredoffered anyany specificspecific gguidancuidancee (in(in anyany consultationconsultation oror indeedindeed inin anyany previousprevious decision)decision) onon thethe rrelevanelevantt geographicgeographic marketmarket forfor thethe grocerygrocery wholesalewholesale marketmarket inin thethe CChannehannell Islands.Islands.

WWhehenn consideringconsidering thethe wholesalewholesale supplysupply ofof otherother productsproducts inin thethe ChannelChannel Islands,Islands, i.e.i.e. fuel,fuel, CICRACICRA againagain consideredconsidered GuernseyGuernsey andand JerseyJersey asas separateseparate ggeographieographicc marketsmarkets forfor thethe purposepurpose ofof assessment.assessment. ThisThis decisiondecision waswas aarguablrguablyy reachedreached onon thethe basisbasis thatthat fuelfuel isis importedimported intointo GuernseyGuernsey andand JJerseerseyy byby seasea fromfrom variousvarious pointspoints ofof originorigin andand onon thethe factfact thatthat thethe supplysupply aarrangementrrangementss areare differentdifferent forfor eacheach islandisland duedue toto thethe differentdifferent portport andand sstoragtoragee facilitiesfacilities availableavailable specificallyspecifically forfor fuelfuel products.products.

IInn thisthis casecase thethe relevantrelevant productsproducts areare mainlymainly importedimported intointo eacheach islandisland ffroromm thethe samesame pointpoint ofof originorigin (i.e.(i.e. bothboth partiesparties (and(and indeedindeed theirtheir ccompetitorsompetitors)) areare basedbased inin thethe UKUK andand importimport productsproducts forfor resaleresale inin thethe CChannehannell IslandsIslands [Redacted]).[Redacted]). WhilstWhilst therethere areare locallocal wholesalerswholesalers operatingoperating iinn thethe ChannelChannel Islands,Islands, inin thethe eventevent thatthat anan existingexisting customercustomer ofof eithereither PPartartyy waswas lookinglooking forfor anan alternativealternative wholesalewholesale suppliersupplier toto deliverdeliver aa ssimilaimilarr rangerange andand volumevolume ofof productsproducts asas thethe Parties,Parties, wewe considerconsider itit moremore llikelikelyy thatthat thethe customercustomer wouldwould looklook toto thethe UKUK ratherrather thanthan locallylocally forfor thatthat aalternativlternativee supplier.supplier.

IInn itsits recentrecent Tesco/BookerTesco/Booker decision,decision, thethe CMACMA diddid notnot reachreach aa conclusionconclusion oon thethe geographicgeographic scopescope ofof thethe wholesalewholesale markets.markets. However,However, itit notednoted tthahatt competitioncompetition forfor delivereddelivered grocerygrocery wholesalewholesale waswas likelylikely toto bebe 1010 rregionalegional,, althoughalthough therethere areare somesome nationalnational wholesalers.wholesalers.

TThhee PartiesParties considerconsider thatthat therethere isis likelylikely toto bebe somesome constraintconstraint fromfrom wwholesalerholesalerss operatingoperating inin thethe UK,UK, whowho couldcould choosechoose toto importimport productsproducts ffroromm portsports onon thethe southsouth coastcoast ofof thethe UKUK (such(such asas PortsmouthPortsmouth oror SSouthamptonouthampton)) intointo thethe ChannelChannel Islands.Islands. ThisThis isis likelylikely toto bebe moremore aachievablchievablee forfor wholesalerswholesalers whichwhich areare alreadyalready operatingoperating depotsdepots withinwithin thethe ccatchmenatchmentt areasareas ofof thethe UKUK ports.ports. However,However, thethe PartiesParties recogniserecognise thatthat ttherheree areare additionaladditional logisticallogistical requirementsrequirements inin shippingshipping thethe productsproducts toto

9 9 CICRACICRA (2014),(2014), ~~Review"Review ofof thethe grocerygrocery marketmarket inin JerseyJersey andand Guernsey",Guernsey", DocumentDocument NoNo CICRACICRA 14/06,14/06, 3131 ]Janan.. 10 to ForFor instanceinstance Booker.Booker.

WWQRK\30861189W.ORK\30861189\v.33 1313 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential thethe ChannelChannel IslandsIslands and,and, potentially,potentially, organisingorganising the the furtherfurther distributiondistribution ofof 1111 pproductroductss inin the the islands.islands.

TThhee PartiesParties thereforetherefore submitsubmit thatthat thethe relevantrelevant geographicgeographic marketmarket shouldshould bbee aa single single marketmarket ofof JerseyJersey andand GuernseyGuernsey together,together, althoughalthough recognisingrecognising tthhee constraintconstraint andand possiblepossible entryentry ofof otherother wholesalerswholesalers basedbased inin thethe UK.UK. HHoweverowever,, thethe PartiesParties alsoalso recogniserecognise thatthat thethe customerscustomers areare likelylikely toto looklook ooutsidutsidee thethe ChannelChannel IslandsIslands ifif theythey wishedwished toto changechange wholesalerwholesaler andand asas ssucuchh thethe geographicgeographic marketmarket maymay bebe asas widewide asas thethe UKUK andand thethe ChannelChannel Islands.Islands. InIn anyany event,event, thethe PartiesParties dodo notnot considerconsider therethere toto bebe anyany ccompetitioompetitionn concernsconcerns inin eithereither instance.instance.

44..33 ForFor eacheach ofof thethe markets)market(s) identifiedidentified inin 4.2,4.2, identifyidentify thethe areasareas ofof overlapoverlap betweenbetween tthhee partiesparties toto thethe merger,merger, asas appropriate.appropriate.

WWhilhilee bothboth PartiesParties wholesalewholesale supplysupply grocerygrocery productsproducts toto theirtheir customers,customers, thethe aarereaa ofof overlapoverlap inin thisthis casecase isis minimal.minimal.

[[RedactedRedacted]] CGLCGL wouldwould notnot offeroffer wholesalewholesale supplysupply ofof grocerygrocery productsproducts toto anyany oothetherr companiescompanies inin GuernseyGuernsey andand JerseyJersey otherother thanthan toto thethe CICI Co-opCo-op [Redacted].[Redacted],

DDuuee toto thesethese limitations,limitations, Nisa'sNisa's customers,customers, andand indeedindeed anyany otherother retailersretailers inin JJerseerseyy andand Guernsey,Guernsey, wouldwould notnot bebe ableable toto switchswitch toto wholesalewholesale supplysupply fromfrom CGLCGL uundenderr thethe FRTSFRTS arrangementarrangement andand thereforetherefore thethe ProposedProposed TransactionTransaction doesdoes notnot aaltelterr thethe currentcurrent competitivecompetitive conditionsconditions inin thethe ChannelChannel Islands.Islands.

[[RedactedRedacted]]

HHoweverowever,, thethe PartiesParties notenote thatthat SandpiperSandpiper CICI announcedannounced onon 1212 FebruaryFebruary 20182018 tthahatt itit hadhad enteredentered intointo aa franchisefranchise andand wholesalewholesale supplysupply agreementagreement withwith MMorrisonsorrisons.. AccordingAccording toto SandpiperSandpiper CI'sCI's presspress releaserelease itit willwill commencecommence aa 1212 mmontonthh conversionconversion programmeprogramme inin latelate springspring toto convertconvert mostmost ofof itsits minimini-- supermarketssupermarkets into'Morrisonsinto 'Morrisons Daily'Daily' stores.stores. [Redacted][Redacted]

44..44 ForFor eacheach ofof thethe markets)market(s) identifiedidentified inin 4.2,4.2, specifyspecify marketmarket sharesshares inin GuernseyGuernsey aand/ond/orr JerseyJersey (as(as relevant),relevant), beforebefore andand afterafter thethe merger,merger, forfor eacheach competitorcompetitor ((includinincludingg thethe mergingmerging parties).parties). ExplainExplain howhow youyou havehave calculatedcalculated marketmarket sshareharess andand provideprovide supportingsupporting evidenceevidence (e.(e.g.g. turnoverturnover ofof thethe partiesparties inin thethe rrelevanelevantt marketmarket comparedcompared toto turnoverturnover inin Guernsey/JerseyGuernsey/Jersey asas aa whole).whole).

TThhee PartiesParties dodo notnot havehave aa clearclear viewview ofof thethe marketmarket sharesshares inin thethe ChannelChannel IslandsIslands ggiveivenn theirtheir limitedlimited involvementinvolvement inin thethe ChannelChannel Islands.Islands. Further,Further, thethe PartiesParties areare nnoott awareaware ofof anyany thirdthird partyparty datadata providerprovider (such(such asas KantarKantar oror Nielsen)Nielsen) whichwhich

11 11 [Redacted][Redacted]

WWORK\3Q861189W.ORK\30861189\v.33 1414 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential providesprovides marketmarket shareshare datadata inin thethe ChannelChanne l Islands.Islands . However,However, thethe PartiesParties havehave ttrieriedd toto estimateestimate thethe sizesize ofof thethe marketmarket basedbased onon theirtheir limitedlimited knowledgeknowledge andand ppublicallublicallyy availableavailable informationinformation relatingrelating toto thethe retailretai l market.market. TheThe PartiesParties notenote tthahatt CGLCGL isis primarilyprimarily aa retailerretailer andand notnot aa wholesalerwholesaler andand thereforetherefore onlyonly hashas aa limitedlimited viewview ofof thethe wholesalewholesale marketmarket fromfrom publicpublic informationinformation andand thatthat neitherneither PPartartyy hashas extensive extensive operations operations inin the the ChannelChanne l IslandsIslands (the (the turnover turnover ofof eacheach PartyParty inin thethe ChannelChanne l IslandsIslands accountsaccounts forfor lessless thanthan 1.5%1.5% ofof thethe relevantrelevant Party'sParty's tturnover)urnover)..

InIn thethe "Proposed"Proposed PurchasePurchase ofof SparSpar (Channel(Channe l Islands)Islands) LimitedLimited byby SandpiperciSandpiperci RRetaietail l LimitedLimited —Consolidated- Consolidated submissionsubmission byby SandpiperciSandpiperc i RetailRetai l LimitedLimited asas toto mmarkearkett definitiondefinition andand competitioncompetition effects",effects", dateddated 2929 NovemberNovember 20162016 thethe ffollowinollowingg marketmarket sharesshares of of the the retailretai l marketmarket inin Jersey Jersey werewere submittedsubmitted toto CICRA:CICRA:

1212 RRetaietaill MarketMarket ShareShare

SSandpipeandpiperr [40[40 - - 50]% 50]%

WWaitrosaitrosee [25[25-30] — 30]%%

CCo-oo-opp [30[30-40] — 40]%

AAllianclliancee [0[0-5] — 5]%

TTotaotall 100%100%

TThhee PartiesParties alsoalso notenote thatthat therethere isis aa BestBest OneOne thatthat operatesoperates inin thethe retailretail marketmarket iinn Jersey.Jersey.

TThhee PartiesParties areare notnot awareaware ofof anyany estimatesestimates thatthat havehave beenbeen submittedsubmitted toto CICRACICRA aabouboutt thethe sizesize ofof thethe retailretail marketmarket inin Guernsey.Guernsey. HoweverHowever thethe PartiesParties notenote thatthat allall ooff thethe retailersretailers mentionedmentioned aboveabove (with(with thethe exceptionexception ofof CostcutterCostcutter whichwhich isis nownow pparartt ofof thethe SandpiperSandpiper CICI group)group) areare alsoalso presentpresent inin thethe GuernseyGuernsey market,market, wherewhere MMarkarkss &Spencer& Spencer additionallyadditionally operatesoperates asas aa franchisefranchise ofof Creasey'sCreasey's (Franchise)(Franchise) 1313 LLimitedimited .

UUsinsingg thethe aboveabove marketmarket sharesshares forfor thethe retailretail market,market, itit isis possiblepossible toto roughlyroughly eestimatstimatee aa sizesize forfor thethe wholesalewholesale marketmarket overover bothboth islands.islands. TheThe PartiesParties aacknowledgcknowledgee thatthat thisthis estimateestimate isis notnot aa perfectperfect representationrepresentation ofof thethe wholesalewholesale mmarkearkett inin GuernseyGuernsey andand JerseyJersey (for(for instanceinstance itit cannotcannot taketake intointo accountaccount thethe ddifferenifferentt retailerretailer marginsmargins andand doesdoes notnot accountaccount forfor thethe presencepresence ofof MarksMarks &&

12 1z ProposedProposed PurchasePurchase ofof SparSpar (Channel(Channel Islands)Islands) LimitedLimited byby SandpiperciSandpiperci RetailRetail LimitedLimited -Consolidated- Consolidated ssubmissioubmissionn byby SandpiperciSandpiperci RetailRetail LimitedLimited asas toto marketmarket definitiondefinition andand competitioncompetition effects",effects", 2929 NovemberNovember 22016016.. Pg.13Pg.13 -this- this tabletable hashas beenbeen updatedupdated toto reflectreflect thatthat SandpiperSandpiper CICI nownow ownsowns thethe CostcutterCostcutter stores.stores. 13 13 TheThe PartiesParties understandunderstand thatthat MarksMarks andand Spencer'sSpencer's inin JerseyJersey operatesoperates asas a franchisefranchise ofof SandpiperSandpiper CI.CI.

WWORK\3Q861189W.ORK\30861189\v.33 1515 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential SpencerSpencer andand IcelandIceland whowho provideprovide wholesalewholesale supplysupply toto theirtheir respectiverespective franchisesfranchises oonn thethe islands).islands).

[[RedactedRedacted]] ThisThis leavesleaves anan estimatedestimated marketmarket sizesize ofof betweenbetween £257£257 millionmillion toto ££363699 millionmillion forfor wholesalewholesale grocerygrocery supplysupply inin GuernseyGuernsey andand Jersey.Jersey.

[[RedactedRedacted]]

UUndenderr thatthat assumption,assumption, thethe sharesshares ofof wholesalewholesale grocerygrocery supplysupply forfor CGLCGL andand NisaNisa wwoulouldd bebe asas follows:follows:

PPartartyy TurnoverTurnover EstimatedEstimated MarketMarket ShareShare

CCGGLL [Redacted][Redacted] [15[15 —- 25%]25%]

NNisisaa [Redacted][Redacted] [0-5%][0-5%]

CCombineombinedd [Redacted][Redacted] [15[15 —- 25%]25%]

FFurtherurther,, [Redacted][Redacted] onon thethe assumptionassumption thatthat SandpiperSandpiper CICI isis ofof aa similarsimilar sizesize toto CICI CCo-oo-opp (as(as thethe marketmarket sharesshares providedprovided byby SandpiperSandpiper CICI indicate),indicate), NisaNisa onlyonly pproviderovidedd SandpiperSandpiper CICI withwith aa proportionproportion ofof itsits wholesalewholesale supplysupply ofof groceries.groceries. TheThe PPartieartiess understandunderstand thatthat SandpiperSandpiper CICI alsoalso obtainsobtains wholesalewholesale grocerygrocery suppliessupplies ffroromm UKUK retailersretailers suchsuch asas Iceland,Iceland, MarksMarks &Spencer& Spencer andand Waitrose.Waitrose. AsAs statedstated aabovebove,, thethe aboveabove estimatesestimates dodo notnot taketake intointo accountaccount thethe marginmargin oror thethe wwholesalholesalee supplysupply ofof companiescompanies suchsuch asas Iceland,Iceland, MarksMarks &Spencer& Spencer oror BestBest WayWay wwhhoo areare allall activeactive inin thethe ChannelChannel Islands.Islands.

44..55 ProvideProvide aa descriptiondescription ofof howhow competitioncompetition worksworks inin thethe markets)market(s) identifiedidentified inin 44..22 above.above. ForFor example,example, dodo businessesbusinesses competecompete onon price,price, service,service, qualityquality oror iinnovationnnovation?? WhatWhat areare thethe customarycustomary termsterms withwith supplierssuppliers andand customers?customers?

As describeddescribed above,above, CGLCGL onlyonly hashas a wholesalewholesale supplysupply arrangementarrangement withwith CICI Co-opCo-op aanndd doesdoes notnot intendintend toto offeroffer wholesalewholesale supplysupply toto anyany otherother potentialpotential customerscustomers ooutsidutsidee ofof thethe ProposedProposed Transaction.Transaction.

NNisisaa hashas a limitedlimited numbernumber ofof contractscontracts inin thethe ChannelChannel Islands.Islands. TheseThese includeinclude thethe ssupplupplyy toto SandpiperSandpiper CICI [Redacted][Redacted] andand smallersmaller accountsaccounts toto [Redacted][Redacted] otherother ccustomerustomerss whowho areare activeactive asas eithereither retailersretailers oror wholesalerswholesalers inin thethe ChannelChannel IIslandsslands.. [Redacted][Redacted]

WWC)RK\30861189W.ORK\30861189\v.33 1616 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential [Redacted][Redacted] TheThe PartiesParties notenote thatthat accordingaccording toto Sandpiper'sSandpiper's website,website, itit hashas IcelandIceland aanndd MarksMarks &Spencer& Spencer franchisesfranchises andand stocksstocks WaitroseWaitrose productsproducts inin itsits FoodhallFoodhall ssupermarketsupermarkets.. AsAs notednoted above,above, SandpiperSandpiper CIC I hashas alsoalso recentlyrecently announcedannounced itsits iintentiontentionn toto enterenter intointo aa franchisefranchise andand wholesalewholesale agreementagreement withwith MorrisonsMorrisons [[Redacted]Redacted]..

[[RedactedRedacted]]

TThhee PartiesParties areare unawareunaware ofof thethe naturenature ofof thethe relationshiprelationship otherother grocerygrocery wwholesalerholesalerss havehave withwith theirtheir customerscustomers andand whetherwhether wholesalerswholesalers suchsuch asas IcelandIceland oorr MarksMarks &Spencer& Spencer wouldwould onlyonly supplysupply directlydirectly toto theirtheir franchisesfranchises oror whetherwhether ttheheyy wouldwould alsoalso supplysupply toto otherother customers.customers.

44..66 ProvideProvide thethe contactcontact detailsdetails forfor eacheach ofof thethe parties'parties' toptop fivefive competitorscompetitors ((whethewhetherr locatedlocated inin GuernseyGuernsey and/orand/or JerseyJersey oror abroad)abroad) inin thethe markets)market(s) iidentifiedentifiedd inin 4.2.4.2.

MMajoajorr grocerygrocery wholesalerswholesalers1414 whichwhich operateoperate inin GuernseyGuernsey andand JerseyJersey1515 include:include:

11.. Waitrose;Waitrose; 22.. MarksMarks &Spencer;& Spencer; 33.. BestWay;BestWay; 44.. Tesco/Booker;Tesco/Booker; andand 55.. IcelandIceland

TThhee PartiesParties dodo notnot havehave appropriateappropriate contactcontact detailsdetails forfor thesethese competitorscompetitors inin thethe CChannehannell Islands.Islands.

TThhee PartiesParties alsoalso notenote thatthat Today'sToday's andand LandmarkLandmark buyingbuying groupsgroups havehave membersmembers inin JJerseyersey,, whichwhich indicatesindicates thatthat theythey supplysupply grocerygrocery wholesalewholesale servicesservices toto thethe CChannehannell Islands.Islands.

TThhee PartiesParties additionallyadditionally notenote thatthat thethe followingfollowing wholesalerswholesalers werewere recognisedrecognised asas bbeineingg competitorscompetitors ofof BookerBooker inin thethe recentrecent CMACMA Tesco/BookerTesco/Booker investigationinvestigation andand tthereforhereforee areare wholesalewholesale grocerygrocery supplierssuppliers inin thethe UK.UK. TheseThese includeinclude thethe followingfollowing wwholesalerholesalerss notnot listedlisted above:above: ,Costco, Blal

44..77 ProvideProvide thethe contactcontact detailsdetails forfor eacheach ofof thethe parties'parties' toptop fivefive supplierssuppliers (whether(whether llocateocatedd inin GuernseyGuernsey and/orand/or JerseyJersey oror abroad)abroad) inin thethe markets)market(s) identifiedidentified inin 4.24.2

l1a4 RelevantRelevant productproduct marketmarket i1s5 RelevantRelevant geographicalgeographical marketmarket

WWQRK\30861189\v.ORK\30861189\v.33 1717 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential CGL:CGL:

[[RedactedRedacted]]

NNisaisa::

[[RedactedRedacted]]

44..88 ProvideProvide thethe contactcontact detailsdetails forfor eacheach ofof thethe parties'parties' toptop fivefive customerscustomers(whether (whether llocateocatedd inin GuernseyGuernsey and/orand/or JerseyJersey oror abroad)abroad) inin thethe markets)market(s) identifiedidentified inin 4.2.4.2.

CCGGLL

[[RedactedRedacted]]

NNisisaa

[[RedactedRedacted]]

44..99 ProvideProvide thethe contactcontact detailsdetails forfor anyany tradetrade associationassociation oror otherother industryindustry oorganisatiorganisationn inin GuernseyGuernsey and/orand/or JerseyJersey concernedconcerned withwith thethe markets)market(s) iidentifiedentifiedd inin 4.2.4.2.

NN//AA

44.1.100 ProvideProvide detailsdetails ofof anyany jointjoint ownership,ownership, agreementsagreements oror jointjoint venturesventures amongamong tthhee competitorscompetitors identifiedidentified inin 4.4.4.4.

TThhee PartiesParties areare notnot awareaware ofof any.any.

44.1.111 DiscussDiscuss thethe extentextent toto whichwhich importsimports provideprovide actualactual oror potentialpotential competitioncompetition inin tthhee markets)market(s) identifiedidentified inin 4.2.4.2. (Cover(Cover factorsfactors suchsuch asas transporttransport costs,costs, tariffs,tariffs, qquotasuotas,, standards,standards, governmentgovernment regulationsregulations etc).etc).

CCGGLL andand NisaNisa areare bothboth basedbased inin thethe UKUK andand importimport theirtheir productsproducts forfor resaleresale intointo GGuernseuernseyy andand Jersey.Jersey. NeitherNeither PartyParty suppliessupplies locallylocally producedproduced productsproducts toto theirtheir ccustomersustomers.. AllAll ofof thethe competitorscompetitors listedlisted inin 4.64.6 areare basedbased inin thethe UKUK andand importimport pproductroductss intointo thethe ChannelChannel IslandsIslands andand provideprovide competitioncompetition inin thethe relevantrelevant mmarketarketss asas theythey alsoalso provideprovide thethe wholesalewholesale supplysupply ofof groceriesgroceries toto GuernseyGuernsey andand JJerseerseyy fromfrom theirtheir depotsdepots inin thethe UI<.UK.

WWORK\3Q861189V.ORK\30861189\v.33 1818 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential TheThe PartiesParties dodo notnot havehave anyany informationinformation onon howhow retailersretailers obtainobtain productsproducts from from localloca lsuppliers suppliers oror wholesalers,wholesalers, asas the the PartiesParties themselves themselves dodo notnot obtainobtain productsproducts tthroughroughh these these channels.channels. The The PartiesParties consider consider that that retailersretailers in in the the ChannelChanne lIslands Islands wwoulouldd bebe betterbetter placedplaced toto answeranswer questionsquestions aboutabout thethe procurementprocurement ofof locallocal ggoodsoods..

AAss regardsregards potentialpotentia l competition,competition, thethe partiesparties areare notnot awareaware ofof anyany specificspecific rrelevanelevantt restrictiverestrictive costs,costs, tariffstariffs oror quotasquotas oror existingexisting standardsstandards oror regulationsregulations wwhichichh wouldwould preventprevent otherother similarsimilar wholesalerswholesalers basedbased inin thethe UKUK from from potentiallypotentially 1616 eexpandinxpandingg into into GuernseyGuernsey andand Jersey.Jersey.

44.1.122 DescribeDescribe thethe barriersbarriers toto entryentry oror expansionexpansion thatthat existexist forfor thethe markets)market(s) identifiedidentified inin 4.2, 4.2, including,including, butbut notnot limitedlimited to,to, thethe capitalcapital expenditureexpenditure required,required, ppermitermitss oror approvalsapprovals required,required, planningplanning restraints,restraints, healthhealth andand safetysafety restraints,restraints, aavailabilitvailabilityy ofof rawraw materials,materials, R&DR&D requirements,requirements, thethe necessarynecessary intellectualintellectual ppropertropertyy oror expertise,expertise, advertising/promotionaladvertising/promotional requirements,requirements, andand wherewhere ppossibleossible,, anan estimateestimate ofof thethe timetime requiredrequired andand resourcesresources neededneeded toto overcomeovercome ttheshesee factors,factors, includingincluding anan estimateestimate ofof thethe extentextent toto whichwhich costscosts areare rrecoverableecoverable..

TThhee PartiesParties considerconsider thatthat barriersbarriers toto entry/expansionentry/expansion areare lowlow inin thethe grocerygrocery wwholesalholesalee servicesservices sector.sector.

[[RedactedRedacted]]

TThhee PartiesParties notenote thatthat therethere areare multiplemultiple companiescompanies whowho offeroffer freightfreight servicesservices bbetweeetweenn thethe UKUK andand thethe ChannelChannel IslandsIslands [Redacted].[Redacted]. ManyMany ofof thesethese allowallow ccustomerustomerss toto eithereither deliverdeliver theirtheir freightfreight toto depotsdepots onon thethe southsouth coastcoast (such(such asas PPooleoole,, PortsmouthPortsmouth oror Southampton)Southampton) oror offeroffer doordoor toto doordoor servicesservices (i.e.(i.e. ccollection)ollection)..

TThhee PartiesParties thereforetherefore considerconsider thatthat wholesalerswholesalers inin thethe UKUK couldcould easilyeasily choosechoose toto wwholesalholesalee supplysupply groceriesgroceries toto thethe ChannelChannel IslandsIslands fromfrom theirtheir UKUK basedbased depotsdepots wwithouithoutt requiringrequiring accessaccess toto freightfreight oror storagestorage inin thethe ChannelChannel Islands,Islands, [Redacted].[Redacted].

TThhee CMACMA notednoted inin thethe Tesco/BookerTesco/Booker finalfinal reportreport thatthat substantialsubstantial expansionexpansion byby wwholesalerholesalerss isis possiblepossible inin aa timelytimely manner,manner, andand whilewhile entryentry maymay bebe moremore ddifficultifficult,, inin thethe UKUK therethere hashas beenbeen recentrecent entryentry byby newnew playersplayers notnot previouslypreviously aactivctivee inin wholesale,wholesale, suchsuch asas Morrisons.Morrisons. TheThe PartiesParties alsoalso notenote thethe recentrecent activitiesactivities ooff Sainsbury'sSainsbury's inin thethe UKUK wholesalewholesale market,market, includingincluding itsits bidbid forfor NisaNisa andand itsits aarrangemenrrangementt withwith EuroEuro Garages.Garages.

16 16 HoweverHowever thethe PartiesParties notenote thatthat anyany wholesalerwholesaler importingimporting intointo thethe ChannelChannel IslandsIslands wouldwould havehave toto considerconsider dutyduty aanndd HMRCHMRC inspections.inspections.

WWORKV30861189W.ORK\30861189\v.33 1919 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 4.134.13 IdentifyIdentify separatelyseparately anyany competitorscompetitors thatthat havehave entered,entered, significantlysignificantly expandedexpanded in,in, oror exitedexited the the markets)market(s) identifiedidentified inin 4.2 4.2 inin the the pastpast three three years.years.

OOnn 1212 FebruaryFebruary 2018,2018, MorrisonsMorrisons announcedannounced thatthat itit hadhad enteredentered intointo aa franchise franchise aanndd wholesalewholesale supplysupply contractcontract withwith SandpiperSandpiper CI.CI. TheThe conversionconversion periodperiod forfor thisthis ccontracontractt isis due due toto commencecommence inin latelate SpringSpring 2018 2018 andand willwill taketake aa year. year.

AAlthouglthoughh itit fallsfalls justjust outsideoutside ofof thethe 33 yearyear periodperiod referredreferred toto above,above, itit isis relevantrelevant ttoo notenote thatthat AllianceAlliance establishedestablished aa partnershippartnership withwith TescoTesco inin 20132013 whichwhich indicatesindicates thatthat thethe wholesalewholesale grocerygrocery marketmarket inin GuernseyGuernsey andand JerseyJersey isis openopen andand fflexibllexiblee andand thatthat newnew entryentry isis possible.possible.

[[RedactedRedacted]]

44.1.144 IdentifyIdentify anyany firms,firms, currentlycurrently notnot inin thethe markets)market(s) identifiedidentified inin 4.24.2 thatthat couldcould rreasonableasonablyy enterenter suchsuch markets.markets.

AAss notednoted aboveabove atat 4.114.11 andand 4.13,4.13, thethe partiesparties taketake thethe viewview thatthat asas theythey supplysupply ggrocerroceryy retailersretailers fromfrom theirtheir depotsdepots inin thethe UKUK therethere isis nothingnothing toto stopstop anyany ofof thethe oothetherr wholesalerswholesalers currentlycurrently activeactive inin thethe UKUK fromfrom expandingexpanding theirtheir businessbusiness intointo GGuernseuernseyy andand JerseyJersey ifif soso inclined.inclined.

IInn particular,particular, thethe PartiesParties considerconsider thatthat wholesalerswholesalers withwith depotsdepots onon thethe southsouth ccoasoastt (and(and thereforetherefore nearnear toto thethe necessarynecessary portport facilities)facilities) suchsuch asas CostcoCostco'l17 couldcoul d eexpanxpandd theirtheir businessbusiness intointo GuernseyGuernsey andand JerseyJersey ifif soso inclined.inclined.

TThhee PartiesParties additionallyadditionally believebelieve thatthat therethere wouldwould bebe nothingnothing toto preventprevent EEuropeanuropean,, andand particularlyparticularly French,French, wholesalerswholesalers fromfrom importingimporting productsproducts toto thethe CChannehannell Islands.Islands. However,However, thethe PartiesParties areare notnot activeactive inin thesethese marketsmarkets andand cannotcannot pprovidrovidee furtherfurther informationinformation onon anyany EuropeanEuropean wholesalerswholesalers whowho couldcould enterenter thethe mmarketarket..

44.1.155 ProvideProvide anan assessmentassessment ofof anyany effectseffects thethe mergermerger maymay havehave withinwithin anyany partpart ofof GGuernseuernseyy oror JerseyJersey (identifying(identifying anyany particularparticular parishes/localparishes/local areasareas affected),affected), ifif ddifferenifferentt thanthan thosethose alreadyalready described.described.

AAs notednoted above,above, neitherneither CGLCGL nornor NisaNisa havehave anyany presencepresence inin thethe grocerygrocery retailretail mmarkearkett inin JerseyJersey oror Guernsey.Guernsey. ThisThis meansmeans thatthat aa similarsimilar analysisanalysis toto thethe oneone usedused bby thethe CMACMA inin thethe Tesco/BookerTesco/Booker mergermerger investigationinvestigation1818 isis notnot necessary.necessary.

Att thethe wholesalewholesale level,level, thethe PartiesParties considerconsider thatthat thethe ProposedProposed TransactionTransaction wouldwould nnoott reducereduce thethe numbernumber ofof grocerygrocery wholesalerwholesaler optionsoptions availableavailable toto grocerygrocery

17 17 Costco'sCostco's websitewebsite indicatesindicates thatthat itit hashas aa warehousewarehouse inin Southampton.Southampton. 18 18 IncludingIncluding itsits ~vGUPPI'vGUPPI economiceconomic assessment'.assessment'.

WWORK\3Q861189W.ORK\30861189\v.33 2020 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential retailersretailers inin GuernseyGuernsey andand Jersey.Jersey. ThisThis isis because,because, prepre-merger-merger,, CGLCGL would would notnot bebe aavailablvailablee asas aa wholesalewholesale suppliersupplier toto non-FTRSnon-FTRS membermember stores.stores. [Redacted] [Redacted] AsAs aa rresultesult,, the the ProposedProposed TransactionTransaction shouldshould notnot havehave anyany directdirect effecteffect inin the the marketmarket ffoorr the the wholesalewholesale supply supply of of groceries.groceries.

[Redacted][Redacted]

I nIn anyany event,event, thethe wholesalewholesale grocerygrocery marketmarket inin GuernseyGuernsey andand JerseyJersey currentlycurrently includesincludes aa numbernumber ofof majormajor activeactive playersplayers (as (as wellwell asas aa numbernumber ofof otherother smallersmaller oorr independentindependent localloca l wholesalers)wholesalers) thatthat couldcould provideprovide crediblecredible alternativesalternatives toto ggrocerroceryy retailersretailers inin thethe eventevent ofof aa decreaseddecreased levelleve l ofof serviceservice oror anan increaseincrease inin wwholesalholesalee pricesprices fromfrom thethe mergedmerged partiesparties followingfollowing thethe ProposedProposed Transaction.Transaction. TThhee PartiesParties alsoalso notenote therethere areare aa numbernumber ofof otherother wholesalerswholesalers activeactive inin thethe UKUK aanndd inin thethe recentrecent Tesco/BookerTesco/Booker investigationinvestigation thethe CMACMA concludedconcluded thatthat ccompetitioompetitionn inin thethe wholesalewholesale sectorsector waswas strong.strong

[[RedactedRedacted]]

FFurtherurther,, inin relationrelation toto SandpiperSandpiper CIC I[Redacted], [Redacted], itit isis worthworth emphasisingemphasising itsits recentrecent ddecisioecisionn toto enterenter intointo aa longlong termterm franchisefranchise andand wholesalewholesale supplysupply agreementagreement wwitithh Morrisons,Morrisons,1919 [Redacted].[Redacted]. ItIt isis alsoalso worthworth notingnoting thatthat SandpiperSandpiper alreadyalready hashas oothetherr wholesalewholesale supplysupply relationshipsrelationships inin placeplace withwith otherother wholesalerswholesalers inin GuernseyGuernsey aanndd JerseyJersey including,including, forfor example,example, MarksMarks &Spencer,& Spencer, IcelandIceland andand Waitrose.Waitrose.

TThhee PartiesParties alsoalso notenote thatthat therethere isis aa BestBest OneOne symbolsymbol storestore inin JerseyJersey andand thatthat thethe bbuyinuyingg groups,groups, LandmarkLandmark andand Today's,Today's, listlist membersmembers inin thethe ChannelChannel IslandsIslands andand ffurtheurtherr that,that, asas discusseddiscussed inin paragraphparagraph 4.12,4.12, barriersbarriers toto entryentry areare generallygenerally low.low.

TThereforeherefore,, existingexisting competitioncompetition inin thethe relevantrelevant marketsmarkets isis alreadyalready sufficientlysufficiently sstrontrongg toto ensureensure thatthat thethe ProposedProposed TransactionTransaction wouldwould notnot enableenable thethe partiesparties toto pprofitablrofitablyy increaseincrease pricesprices oror reducereduce serviceservice forfor grocerygrocery retailersretailers andand inin turnturn r.T.7i~~~IiiTT~~consumers.

44.1.166 DescribeDescribe anyany efficienciesefficiencies and/orand/or customercustomer benefitsbenefits thatthat thethe partiesparties expectexpect thethe mmergeergerr toto bringbring andand provideprovide copiescopies ofof anyany documentsdocuments describingdescribing oror quantifyingquantifying eefficienciesfficiencies,, costcost savingssavings oror otherother benefits,benefits, andand indicateindicate (if(if notnot otherwiseotherwise ccontaineontainedd inin thethe documentdocument itself)itself) thethe datedate ofof preparation.preparation.

[[RedactedRedacted]]

19 19 SandpiperSandpiper CI'sCI's presspress releaserelease -- htt~://www.sandaiperci.com/news/morrisons-to-become-sandpiper-s-htto://www. sandpiperci.com/news/morrisons-to-become-sandDiper-s- franchise-and-wholesale-supply-partnerfranchise-and-wholesale-suDDlv-partner andand Morrisons'Morrisons' presspress releaserelease -hops://www.morrisons-- https://www.morrisons- coroorate.com/media-centre/corporate-news/morrisons-annoucorporate.com/media-centre/corporate-news/morrisons-announces-new-aareement-with-sandDiDer nces-new-agreement-with-sandpiper//

WWORK\3Q861189W.ORK\30861189\v.33 2121 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential 4.174.17 IdentifyIdentify anyany products)product(s) (including(including rawraw materials)material(s) oror service(s))service(s)) forfor whichwhich thethe ccombineombinedd purchasespurchases ofof thethe partiesparties willwill accountaccount for for moremore thanthan 10%10% ofof the the totaltotal ssalealess in in GuernseyGuernsey oror JerseyJersey of of that that productproduct oror service.service.

NN//AA asas neitherneither CGLCGL nor nor NisaNisa purchasepurchase productsproducts inin the the ChannelChannel Islands.Islands.

44.1.188 AreAre therethere anyany marketsmarkets inin whichwhich oneone oror moremore ofof thethe undertakingsundertakings concernedconcerned isis eengagengagedd inin businessbusiness activitiesactivities whichwhich areare upstreamupstream oror downstreamdownstream ofof aa productproduct mmarkearkett inin whichwhich anyany ofof thethe otherother partiesparties oror undertakingsundertakings areare engaged,engaged, rregardlesegardlesss ofof whetherwhether therethere isis an an existingexisting customer/customer/ suppliersupplier relationship?relationship?

NNisisaa operatesoperates inin thethe wholesalewholesale grocerygrocery marketmarket inin thethe UKUK andand ChannelChannel IslandsIslands andand CCGGLL operatesoperates inin thethe retailretail grocerygrocery marketmarket inin thethe UKUK [Redacted].[Redacted]. ThereThere isis nono eexistinxistingg verticalvertical relationshiprelationship betweenbetween thethe partiesparties inin Jersey,Jersey, GuernseyGuernsey oror thethe UK.UK.

44.1.199 ProvideProvide aa briefbrief assessmentassessment ofof anyany otherother featuresfeatures thatthat shouldshould bebe takentaken intointo aaccounccountt inin consideringconsidering the the effecteffect ofof thethe merger.merger.

NNoneone..

44.2.200 IdentifyIdentify anyany tradetrade websiteswebsites oror otherother sourcessources ofof information,information, notnot previouslypreviously iidentifieddentified,, whichwhich toto youryour knowledgeknowledge maymay containcontain informationinformation relevantrelevant toto thethe aassessmenssessmentt ofof thethe merger.merger.

fV~NA

55 PublicPublic interestinterest considerationsconsiderations (mergers (mergers notifiablenotifiable inin GuernseyGuernsey only)only)

FFoorr mergersmergers thatthat areare notifiablenotifiable inin Guernsey,Guernsey, provideprovide anan explanationexplanation ofof whywhy thethe ppartieartiess considerconsider thatthat thethe mergermerger willwill notnot bebe toto thethe prejudiceprejudice of:of: consumers,consumers, oror aannyy classclass oror descriptiondescription thereof;thereof; thethe economiceconomic developmentdevelopment andand well-beingwell-being ofof tthhee BailiwickBailiwick ofof Guernsey;Guernsey; andand thethe publicpublic interest.interest.

TThhee PartiesParties dodo notnot considerconsider thatthat thethe ProposedProposed TransactionTransaction willwill bebe toto thethe prejudiceprejudice ooff consumersconsumers oror toto thethe prejudiceprejudice ofof thethe economiceconomic developmentdevelopment andand well-beingwell-being ofof tthhee BailiwickBailiwick ofof Guernsey,Guernsey, nornor toto thethe publicpublic interest.interest. AsAs statedstated above,above, thethe PartiesParties ddoo notnot considerconsider thatthat thethe ProposedProposed TransactionTransaction willwill substantiallysubstantially alteralter thethe marketmarket inin tthhee ChannelChannel Islands,Islands, asas prepre-merge-mergerr CGLCGL wouldwould notnot havehave beenbeen availableavailable toto non-FRTSnon-FRTS mmemberemberss asas aa wholesalewholesale supplier.supplier. TheThe PartiesParties furtherfurther considerconsider thatthat thethe mergermerger willwill bbe toto thethe benefitbenefit ofof consumers,consumers, [Redacted]. [Redacted].

66 CalculationCalculation ofof feesfees (mergers(mergers notifiablenotifiable inin JerseyJersey only)only)

FFoorr mergersmergers thatthat areare notifiablenotifiable inin Jersey,Jersey, provideprovide detailsdetails ofof howhow youyou calculatedcalculated tthhee merger'smerger's fairfair marketmarket valuevalue forfor thethe purposepurpose ofof determiningdetermining thethe appropriateappropriate ffilinilingg fee.fee.

WWORK\3C)861189\v,ORK\30861189\v.33 2222 15762.34215762.342 CClassificationlassification:: ConfidentialConfidential DeclarationDeclaration

I ddeclareclaree that:that:

• TheThe informationinformation givengiven hereinherein andand inin anyany appendicesappendices andand attachmentsattachments heretohereto is,is, tto thethe bestbest ofof mymy knowledgeknowledge andand belief,belief, accurateaccurate andand complete,complete, andand anyany opinionsopinions eexpressexpressedd hereinherein areare sincere.sincere.

• AllAll estimatesestimates areare identifiedidentified asas suchsuch andand areare thethe bestbest estimatesestimates ofof thethe underlyingunderlying ffactsacts.. e PhotocopiesPhotocopies ofof anyany documentsdocuments submittedsubmitted withwith thisthis MergerMerger ApplicationApplication FormForm areare eexacxactt duplicatesduplicates ofof thethe originaloriginal documents.documents. o II havehave readread andand amam awareaware ofof thethe provisionsprovisions ofof SectionsSections 13,13, 16,16, 1717 andand 4848 ofof TheThe CCompetitionompetition (Guernsey)(Guernsey) Ordinance,Ordinance, 20122012 and/orand/or ArticlesArticles 20,20, 21,21, 2222 andand 2525 ofof thethe CCompetitionompetition (Jersey)(Jersey) LawLaw 20052005 (as(as applicable).applicable).

• II havehave thethe authorityauthority toto signsign thisthis declarationdeclaration onon behalfbehalf ofof Co-operativeCo-operative GroupGroup LLimitedimited..

TThhee initialinitial feefee requiredrequired forfor conductingconducting aa firstfirst detaileddetailed reviewreview ofof thethe mergermerger hashas bbeeeenn paidpaid oror isis submittedsubmitted withwith thisthis MergerMerger ApplicationApplication Form.Form.

CCo-operativo-operativee GroupGroup LimitedLimited

SSignedigned:: rn V v~,~

NNameame:: JonJon WormaldWormald

CCompanyompany:: Co-operativeCo-operative GroupGroup LimitedLimited

PPositionosition:: DirectorDirector ofof CorporateCorporate DevelopmentDevelopment

DDateate::

FFoorr andand onon behalfbehalf of:of: Co-operativeCo-operative GroupGroup LimitedLimited I

DeclarationDeclaration

I ddeclareclaree that:that:

• TheTh e informationinformation givengiven hereinherein andand inin anyany appendicesappendices andand attachmentsattachments heretohereto is,is, toto tthhee bestbiist ofof mymv knowledgeknowledge andand belief,belief, accurateaccurate andand complete,complete, andand anyany opinionsopinions eexpressexpressedd hereinherein areare sincere.sincere

• AllAll estimatesestimates areare identifiedidentified asas suchsuch andand areare thethe bestbest estimatesestimates ofof thethe underlyingunderlying ffactsacts..

• PhotocopiesPhotocopies ofof anyany documentsdocuments submittedsubmitted witwithh thisthis MergerMerger ApplicationApplication FormF:orm areare eexacxactt duplicatesduplicates ofof thethe originalonginal documents.documents

• I havehave readread andand amam awareaware ofof thethe provisionsprovisions ofof SectionsSections 13,13, 16,16, 1717 andand 4848 ofof TheThe

CCompetitionompetition (Guernsey)(Guernsey) Ordinance, 2012 and/orand/or ArticlesArticles 20,20; 21,21, 2222 andand 2525 ofof thethe CCompetitionompetition (Jersey)(Jersey) Law 20052005 (as(a? applicable).applicable).

• I havehave thethe authorityauthority toto signsign thisthis declarationdeclaration onon behalfbehalf ofof NisaNisa RetailRetail Limited.Limited.

• TheThe initialinitial feefee requiredrequired forfor conductingconducting a firstfirst detaileddetailed reviewreview ofof thethe mergermerger hashas bbeeeenn paidpaid oror isis submittedsubmitted wwith!th thisthis MergerMerger ApplicationApplication Form.Form.

NNisisaa RetailRetail LimitedLimited

SSigneignedd ; ~,,,~, /~c-U- C~e.~cJL*A

NNameame:' JamesJames ClarkClark

CCompanompany:y NisaNisa RetailRetail LtdLtd

PPositionosition:: FinancialFinancial ControllerController

DDateate:: 2222 FebruaryFebruary 201820] 8

FFoorr andand onon behalfbehalf of:of- NisaNisa RetailRetail LtdLtd

1 Classification:Classification