Wal-Mart pledges to pursue Safeway
Asda owner in strong position
March 20 2003
Wal-mart will ‘vigorously’ pursue UK supermarket chain Safeway following its referral to the Competition Commission.
Along with rivals Tesco, Sainsbury’s and Morrisons, the world’s biggest retailer will have to wait until August 12 for the commission to rule on the local and national competition issues raised by the sale of Safeway.
Tony DeNunzio, Asda’s president and chief executive, said: “We look forward to co-operating fully with the Competition Commission. We have a strong case for being allowed to buy Safeway, which we will pursue vigorously.”
With the deepest pockets of any of the potential bidders, Wal-Mart is in a strong position to persuade Safeway shareholders to hold out for a big payday until the commission issues it ruling rules. However, all the supermarkets are waiting for the next move by Bhs and Arcadis owner Phil Green, the only one of the five potential bidders whose bid has not been referred.
