Asda has refused to be drawn on reports that it lined up financial backing from Barclays Capital for a bid for UK frozen-food retailer Iceland Foods.
Reports this weekend said Barclays Capital has agreed to support Asda should the retailer decide to make a takeover offer for Iceland.
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However, a spokesperson for Asda told just-food today (26 September) that the company “never comments on market speculation, mergers or business developments”.
Last week, just-food reported that the auction for 77% of Iceland had received “a lot of interest” from retailers, investors and the retailer’s CEO Malcolm Walker.
Failed Icelandic banks Landsbanki and Glitnir have put their respective 67% and 10% stakes in the frozen food retailer up for auction.
The source said: “There has clearly been a lot of interest in the auction from across the board, including rival retailers, private-equity firms and Malcolm Walker.”
Walker, the founder and current CEO of Iceland Foods, has expressed his desire to buy the company on a number of occasions.
Numerous financial media and analysts have reported that the banks handling the sale are eyeing a valuation of about GBP1.5bn (US$2.4bn).
Analysts have put Morrisons forward as a front-runner in the race to buy Iceland and the UK’s fourth-largest retailer has appointed Credit Suisse to advise it on any potential offer. Asda has also been named as a possible bidder.
Sainsbury’s is known to be ready to be look at the possible stores on offer from the Iceland estate but is unlikely to make a bid for the entire business.
Tesco, the UK’s largest retailer, would be precluded from buying Iceland on competition grounds but could look to buy individual stores.
