OFT decides on Safeway bids

By LUCY FARNDON
Updated:

 

THE Office of Fair Trading has taken a final decision on which Safeway bidders to refer to the Competition Commission. It is ready to pass the recommendations to Trade and Industry Secretary Patricia Hewitt, who plans an announcement on 18 March.

Potential bidders Tesco, Asda/Wal-Mart and Sainsbury look certain to face a full probe, though Wal-Mart may buy shares in the open market to show its commitment. It is less clear what will happen to Morrison supermarkets and Bhs owner Philip Green.

Green is said to have sounded out other bidders to see whether they want to buy a chunk of Safeway stores, suggesting he needs to make disposals to ensure the economics of a deal stack up. He would walk away if his bid is referred.

Morrison is ready to lay a cash sweetener on the table if it gets clearance. Its all-share bid is worth £2bn, while Safeway (down /2p to 276 1/2p) has a market value of £2.9bn.

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