UK supermarket chain Wm Morrison is reported to be considering lowering the price of its takeover bid for rival Safeway if it is given regulatory approval to proceed with a bid.
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Yorkshire-based Morrisons made a takeover bid for Safeway back in January, but the offer has since lapsed. At yesterday’s [Wednesday’s] closing share price, the bid would have valued Safeway at £2.85bn (US$4.47bn).
However, taking into account the decline in Safeway’s sales and the improved performance by Morrisons, the company may decide to lower its offer, reported the Financial Times.
Morrisons’ bid led to interest in Safeway from rival supermarket firms Tesco, Sainsbury’s and Wal-Mart’s Asda, as well as entrepreneur Philip Green. All parties except Philip Green were referred to the UK’s Competition Commission, which has recently handed over its verdict to the Department of Trade and Industry.
This drawn-out bidding process has led to uncertainty at Safeway, with its market share sliding to 9.2% compared to 10% last year.
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