Costcutter is likely to announce its new supply deal in the next few days, with legal teams ironing out the final terms of the contract, C-Store has learned.

The supply arrangement is widely expected to be with the Co-operative Group in a deal that has been delayed by Nisa members’ vote on a takeover this week.

“People needed to wait for the vote on the Co-op’s takeover of Nisa. It makes sense not to mention it until then, as it could’ve influenced Nisa members’ decision,” a source said. “But rumours of a merger are completely wide of the mark.”

Costcutter issued a letter to its members in August saying that the group had some “exciting opportunities on the table” about collaboration.

A spokesperson for Costcutter said today: “When we wrote to our retailers in late August to update them on discussions we are having in the market, we fully expected this to fuel rumour and speculation.

“However, while we continue to explore all possible opportunities, we will not be making any response until we are ready to make an announcement to our retailers.”