KKR drops Safeway offer
US equity firm withdraws from supermarket bidding
February 24 2003
The poker game being played by potential bidders for UK supermarket chain Safeway has lost its first player after US private equity business Kohlberg Kravis Roberts abandoned plans to make a formal offer.
KKR said it had undertaken significant due diligence based on information provided by Safeway, and “has decided for the time being not to progress its potential offer for Safeway any further.” KKR, named at the weekend as a possible partner in a consortium planning a bid for the Six Continents pub and hotel business, said it would keep its position with regard to Safeway under review.
KKR’s withdrawal leaves Morrisons as the only bidder to have formally tabled an offer for Safeway, while Tesco, Wal-Mart, Sainsbury’s and Bhs and Arcadia owner Philip Green have made submissions regarding potential bids to the Office of Fair Trading.
The Safeway board said it noted the announcement by KKR.
