The acquisition of Safeway may kick-start a flurry of consolidation among the second-tier grocers.
Supermarket groups such as Somerfield and Big Food Group, both of which have recently struggled, could become plays for any of the losers in the battle for Safeway.
Somerfield, which will announce results this week, refused to comment.
Big grocery groups - most notably Tesco, which recently acquired c-store business T&S - have increasingly focused on the potential of smaller, local stores as a route to growth.
A spokesman for Big Food Group played down the impact of a Safeway deal.
He said that the Iceland chain operates on the high street and therefore much of its 'turf' would only be affected to a limited degree.
Nick Hood, partner at corporate recovery firm Begbies Traynor, said: 'I think more consolidation is inevitable. There's no doubt that there will be more snapping up by the big chains.'
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