Wal-Mart weighs up cash bid for Safeway

Retailer Wal-Mart said today it was considering joining a £3 billion sterling bid battle for British supermarket chain Safeway…

Retailer Wal-Mart said today it was considering joining a £3 billion sterling bid battle for British supermarket chain Safeway with an all-cash counter offer.

Wal-Mart - the world's largest retailer and owner of Britain's third-largest supermarket chain, ASDA - said it would make a submission to the country's consumer affairs watchdog, the Office of Fair Trading, to seek clearance for a bid.

Wal-Mart said it would probably pitch its eventual bid below the cash-and-shares bid of 300 pence per share proposed by rival supermarket chain, J Sainsbury.

The Sainsbury's bid would value Safeway at about £3.2 billion, trumping an agreed all-share bid valued at about £2.6 billion from another rival, Wm Morrison Supermarkets.

READ MORE

But Wal-Mart has by far the deepest pockets and is better able to meet investors' appetite for cash.