WH SMITH could be taking over rival newsagents John Menzies.

It has emerged the two chains, which both have several branches in Sussex, are in talks. Amid vicious competition in the newsagents market, Edinburgh-based John Menzies said in January it was looking to sell its 165-year-old shops business to concentrate on its distribution and newspaper wholesaling activities. At the time of the announcement, it was thought rivals Forbuoys and Martins were front runners in the race for its 250 newsagents. But it now seems WH Smith could emerge as the buyer. Neither WH Smith nor John Menzies would comment further. But retail experts were keenly pondering what shape a deal could take. Many said WH Smith, which has 400 high street stores and 100 in airports, was unlikely to buy all the Menzies shops. It was considered more likely WH Smith would buy only the shops in towns where there was no overlap, or those in areas where John Menzies stores were in better positions.

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