Main Page | See live article | Alphabetical index Safeway is a chain of supermarkets in the UK, operated by the company Safeway plc. It was founded in 1962 by Safeway from the USA but was sold in 1987. It is listed on the London Stock Exchange. After some unprofitable years in the late 1990s it recovered with a program of store refurbishments. In 2002 it had the fourth largest supermarket sales in the UK. A Safeway supermerket in south London After perceptions that it was growing more slowly than other large UK chains and with a low share price, various takeover rumours circulated during 2002. On January 9, 2003, the much smaller Wm Morrison Supermarkets made an offer to purchase the chain, offering 1.32 new Morrison shares for each Safeway share, with the cooperation of the Safeway board. However this served only to start a stampede of other potential buyers: J Sainsbury, ASDA / Wal-Mart, Kohlberg Kravis Roberts, Trackdean Investments Limited (controlled by Philip Green, owner of BHS and Arcadia) and Tesco all said they were considering making offers. They were all asked to make submissions to the Office of Fair Trading (OFT) for approval under the Fair Trading Act 1973. On January 23 Safeway's board dropped its recommendation of the Morrisons offer. Kohlberg Kravis Roberts later dropped its proposal. On March 19 the remaining proposals except for Trackdean's (which was said to raise no competition issues) were referred to the Competition Commission by the Trade and Industry Secretary, Patricia Hewitt. The report of the Competition Commission was made public on September 26. A takeover of Safeway by Sainsbury, ASDA or Tesco was "expected to operate against the public interest, and should be prohibited". However a takeover by Morrisons was held to be acceptable on the condition that 53 stores of the combined operation be sold, due to local competition issues. Patricia Hewitt accepted these recommendations. Philip Green announced on 30 October that he was not proceding with a takeover bid, on the basis that it was not clear whether approval could be obtained to sell off individual stores to other chains. On 15 December, Morrisons, the only remaining bidder, made a new offer of 1 Morrisons share plus 60 pence for each Safeway share, again with the cooperation of the Safeway board. External links Company website Hewitt Announces Reference Decisions on Safeway Bidders, Department of Trade and Industry press release, March 19, 2003. Patricia Hewitt Accepts Competition Commission's Conclusions in Safeway Mergers Inquiries, Department of Trade and Industry press release, 26 September 2003. Green leaves Safeway door open; Guardian Unlimited; 31 October 2003 Morrisons in £3bn bid for Safeway; BBC; 15 December 2003. This article is from Wikipedia. All text is available under the terms of the GNU Free Documentation License.