Morrison set for Safeway 'victory'

By DAILY MAIL REPORTER
Updated:

 

SIR Ken Morrison will be the only supermarkets boss getting a good night's sleep after the Competition Commission hands down its ruling on the Safeway bids to the Department of Trade and Industry today.

Analysts fear that bids from Tesco, Asda and Sainsbury will be blocked. Morrison Supermarkets is expected to be cleared on condition that it sells about 60 stores.

Its original all-share offer is worth £2.5bn, but it would need to offer a cash sweetener to win shareholder backing.

Competition Commission chairman Sir Derek Morris has so far given no clue on the outcome. But it is tricky for him to single out any of the big three for special treatment, so many think it could be easier to block them all.

Tesco, Asda and Sainsbury all have more than 16% of the market. Morrison has just 6%.

DTI minister Patricia Hewitt is unlikely to deliver her verdict until mid-September, though some say she has asked for the Commission papers to be sent to her on holiday.

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