Budgens chief urges supermarket inquiry

Budgens boss Eoin McGettigan has demanded another official investigation into UK supermarkets despite the Competition Commission's in-depth analysis of the sector in 2000.

McGettigan, executive chairman of Budgens' owner, Musgrave UK, said another review of the grocery sector is needed in the light of the battle for Safeway, despite the likely referral to the Commission of bids by Sainsbury's and Asda.

He said: 'There needs to be an analysis to ensure a level playing field and fairer trading terms (for and from suppliers). At the moment, unless you grow to a size like Tesco, you're not going to get the same terms.'

An investigation into rival bids for Safeway might take several months, causing massive disruption for all concerned.

A spokeswoman for the OFT said it will take 45 working days to decide whether to refer to the Competition Commission. Asda has already made a submission to the OFT, and Morrisons had done so as Retail Week went to press.

Stephen Lewis, senior partner at law firm Finers Stephens Innocent, said he believes Morrisons is the most likely victor because Wal-Mart and Sainsbury's bids are likely to be blocked.