Morrisons set to shed 53 stores in Safeway buy-out

Morrisons has the go-ahead to bid for Safeway, following the completion of undertakings regarding store disposals.

Morrisons signed undertakings to dispose of 53 Safeway stores. Asda, Sainsbury's and Tesco agreed that they would not bid for Safeway, or any part of Safeway, if that would result in there being fewer than four strong national grocers.

Sir Ken Morrison had 21 days from last Monday to table a hostile bid.

A recommended offer would not be subject to the same deadline.

Reports have suggested that Asda has offered Safeway almost£2 billion for 70 stores, potentially devaluing a Morrisons bid, expected to come in at approximately£2.9 billion.