Wal-Mart linked to Woolworths bid
US retailer might onsider high street move
August 22 2003
Woolworths may be a takeover target for US retail giant Wal-mart, according to City speculation.
Rumours that a bid for the high street general merchandise retailer is on the way have circulated for some time.
However, other observers questioned whether Wal-Mart would make any further moves into the UK market at a time when its high-profile bid for Safeway is under scrutiny by the UK government.
Analyst Numis pointed out that Woolworths’ stores would allow the Wal-Mart owned Asda supermarket chain to move into the lucrative convenience market, as well as providing scope to speed up plans to develop the George clothing brand in the UK high street.
Bhs and Arcadia owner Philip Green, also a declared potential bidder for Safeway, is known to have considered a bid for Woolworths in the past. At the time, he rejected a move due to Woolworths’ stocking problems, an issue the current management has been working to address.
