Asda deal rejected by rivals
Supermarket share-out proposed
August 13 2003
Asda has offered to sell a package of stores to rival Morrisons if it is cleared to buy Safeway, according to reports.
The Wal-Mart owned supermarket chain asked for a second meeting with the Competition Commission at the end of last week, at which is it is said to have offered to sell enough stores to Morrisons to ensure that four strong players remained in the UK supermarket sector.
Asda also suggested that some Safeway stores could be sold to other operators, arguing that competition would be maintained if Asda’s market share increased to match that of Tesco, around 25 per cent.
Asda’s new proposal has led to the six-day delay in the commission submitting its report to the DTI, which was originally due yesterday.
The commission is reported to have asked Morrisons, as well as potential bidders Tesco and Sainsbury’s, for comments on Asda’s proposals by the end of last week. The rival groups are said to have rejected the plan.
An Asda spokesman told the Daily Telegraph newspaper: “On Friday there was a meeting between Asda and commission staff. It was one of many meetings where we continued to develop practical proposals on the issues of remedies. It was a development of earlier proposals and we are pleased that the commission has been given a few extra days to consider it.”
