Safeway denies new takeover bid
No approach from Wal-Mart, says supermarket operator
October 11 2002
Safeway has denied fresh speculation that it is about to be taken over by Wal-Mart
Suggestions that the world’s biggest retailer is about to launch a bid for Safeway have resurfaced in the City, pushing up the share price.
A Safeway spokesman told news agency Reuters: “We are not in talks with anybody, we’ve had no approaches and our aim is to remain independent.”
Last month, it was reported that Wal-Mart had approached the Office of Fair Trading to discuss a possible bid. The combination of Safeway and the Wal-Mart owned Asda chain would create a UK supermarket business with a market share to rival Tesco, as well as overcoming obstacles to organic growth created by the planning regulations.
However, it is unlikely that the OFT would permit a merger without ordering some stores to be sold off.
Asda said it did not comment on market speculation.
