Watchdog 'Yes' to Safeway bid delay

THE battle for control of ailing supermarkets chain Safeway will drag on for at least another week after the competition watchdog agreed to grant an extension to one of the interested bidders.

The Competition Commission was expected to hand its report on the Safeway takeover to the Department of Trade and Industry today but will now not report until 18 August.

Bradford-based WM Morrison is widely considered the favourite to win control of Safeway with its £2.9bn bid but Tesco, Wal-Mart's Asda and Sainsbury's are also seeking clearance to bid for the retailer.

The extended deadline was granted at the request of one of the interested bidders, believed to be Asda.

A DTI spokesman said the extension would allow the group concerned to fully incorporate its assessment into the commission's report.

Stockbroking analysts believe the final decision will be favourable for Morrisons because its northern base would complement Safeway's southern base spread.