The UK’s three largest supermarket chains are reportedly set to face a ban of at least five years on any attempt to buy or break up the UK’s fourth-largest supermarket chain Safeway.
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Last week, the UK’s Department of Trade and Industry gave the all clear to Wm Morrison to proceed with a bid for Safeway on the condition that it sold 53 Safeway stores. The DTI blocked potential bids from the three largest supermarket chains because of competition concerns.
The government said it would ask the Office of Fair Trading to request promises from Tesco, Wal-Mart’s Asda and J Sainsbury that they would not bid for all or any part of Safeway, other than for the 53 stores Morrisons will have to sell off it proceeds with a bid, reported the Financial Times.
The OFT said that any undertakings by the ‘big three’ should be permanent in order to safeguard Safeway’s position as a sizeable fourth player, thereby maintaining competition, the paper said.
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