Following the ruling by the Department of Trade and Industry last week that cleared the way for Yorkshire-based supermarket chain Morrisons to bid for larger rival Safeway, speculation and rumours regarding the future of the UK supermarket sector remained rife over the weekend.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


While an industry source told Reuters that Safeway had not decided what price to ask from Morrisons for the takeover, the Sunday Times reported that Safeway would ask its suitor to pay £3.5bn (US$5.8bn), compared to the retailer’s now-lapsed initial January offer of £2.9bn.


Meanwhile Sainsbury’s, one of three retailers to be blocked by the DTI’s ruling, is reportedly planning to ask for clarification of the ruling that Sainsbury’s, Tesco and Wal-Mart’s Asda can only bid for the 53 Safeway stores that Morrisons will have to sell if buys the chain, reported the Guardian.


The decision by the DTI to limit the number of stores that are allowed to be sold to the country’s three largest retailers will cause difficulties for any financial bidder for Safeway, because any plan to buy the chain and break it up would depend on the buyer being able to sell large numbers of stores off to the larger retailers.


Rumours also circulated that retail entrepreneur Philip Green, whose interest in Safeway is believed by some to have waned, may now consider a bid for Sainsbury’s, the UK’s third-largest supermarket chain.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“I am still studying the Safeway report, “Green was quoted by the Guardian as saying, adding that he had “no comment to make”.


Meanwhile, UK food and clothing retailer Marks & Spencer hinted that it may be interested in acquiring some of the 53 stores that Morrisons would have to sell off if it buys Safeway. While not specifically mentioning Safeway, an M&S spokeswoman said the company is “always interested” in sites that would enable it to expand its food retail business, reported Dow Jones International News.