Qatar not interested in Marks & Spencer after all

The Arabian emirate Qatar, or better its sovereign wealth fund,

the Qatar Investment Authority (QIA), is not going to bid for the retail chain Marks & Spencer (M&S) after all as reported by Bloomberg news agency.

Earlier, QIA had wanted to bid 8 billion pounds for the retail enterprise that is currently undergoing a major restructuring. Though the UK’s biggest player in the fashion sector, Marks & Spencer is feeling the heat from competitors like Primark, especially in the important segment of women’s fashion. Already in 2004, Marks & Spencer had thwarted an acquisition attempt by Topshop owner Philip Green.

"From a tactical perspective, we think that M&S is certainly vulnerable to a bid, as trading and profits are under pressure, with nothing to show yet for the big investments made in online systems and warehousing and the changes in the clothing team ahead of the key autumn season," said retail analyst Nick Bubb. “The question is what anybody thinks could be done with a declining brand like M&S."

Rumours about a potential acquisition of the department store chain have been making the rounds for months. The Qatari offer would have strengthened the investments of the emirate in the UK – the QIA already acquired luxury department store Harrod’s for 1.5 billion pounds in May 2010 from the Egyptian multimillionaire Mohamed Al Fayed. In addition, it holds a 26 percent stake in Sainbury’s, the UK’s third biggest chain of supermarkets.