Philip Green enters Safeway battle
Ex-Asda-boss Allan Leighton signs for Green team
January 20 2003
Philip Green, owner of the Arcadia and Bhs chains, has confirmed that he is considering a takeover bid for supermarket chain Safeway.
Green becomes the fifth potential bidder for the Safeway business, although so far the only offer formally on the table remains the agreed bid by supermarket chain Morrisons. Sainsbury’s, Wal-Mart and US takeover specialist Kohlberg Kravis Roberts have also declared their interest.
Following Safeway’s confirmation at the weekend that Green has requested the same financial information about the business made available to Morrisons, Green said that “deliberations are, however, at a very early stage and there can be no certainty that an offer will be forthcoming. A further announcement will be made if and when appropriate.”
He said that any potential offer would be made in cash by a new company controlled, like his other businesses, by the Green family.
While Green’s background is in clothing rather than food retail, his trump card is the involvement of former Asda chief executive Allan Leighton in his plans.
Leighton, currently chairman of both the Royal Mail and Bhs, sold Asda to Wal-Mart in 1999, prior to which he was involved in merger talks with Safeway. His experience of the supermarket sector and knowledge of the Safeway business would bring even more credibility to Green’s bid, while his involvement in the successful launch of the George at Asda clothing range would be invaluable in establishing an increased non-food offer at Safeway.
Former Arcadia chief executive Stuart Rose is also said to have been approached by Green, but has made no commitment to getting involved in any bid.
With no presence in the supermarket sector, a bid by Green would not present the same competition issues as bids from Sainsbury’s or Wal-Mart.
Howvere, the Guardian quoted a Morrisons spokesman who was dismissive of Green’s interest: “We are sceptical because he would be out of his depth in food retailing. It’s not about design or flare but logistics.”
