Londis and Budgens will be bought by Booker Group plc, the UK’s biggest food wholesaler, if the deal receives approval from the competition authorities.

Booker announced it had agreed a £40m deal with Ireland-based Musgrave Group plc to acquire Musgrave Retail Partners GB, which comprises the Londis and Budgens businesses in Great Britain.

Completion of the acquisition is conditional on the approval of the Competition & Markets Authority.

There are 1,630 convenience stores in the Londis symbol group, with sales in the year to December 2014 totalling £504m. Londis has a preferred supplier agreement with Certas Energy and across all fuel brands is present on 265 dealer sites in the forecourt sector.

Budgens’ franchised chain of 167 grocery stores had sales of £329m in 2014, and is present on 42 dealer sites in the forecourt sector. In the year to December 2014, Musgrave Retail Partners GB had sales of £833m and made an operating loss before exceptional items of £7.4m.

Booker said its aim was to further develop the Budgens and Londis brands alongside Premier and Family Shopper, Booker’s retail brands. Musgrave Retail Partners GB’s supply chain will be used for delivery to Booker retail customers. It added that Budgens and Londis customers will retain their brands, but would benefit from a better local and national supply chain.

Booker and Musgrave are also developing a strategic partnership agreement to facilitate opportunities and the sharing of competencies between the two groups.

Commenting on the proposed transaction, Charles Wilson, chief executive of Booker, said: “Booker, Londis and Budgens are joining forces to help independent retailers prosper throughout Great Britain. This transaction should strengthen Londis, Budgens, Premier, Family Shopper and other Booker retailers, through improving choice, prices and service to consumers. Overall it will help independent retailers prosper.”