US giant Wal-Mart set to bid for Safeway

US stores giant Wal-Mart entered the battle for Safeway today by confirming it was considering an all-cash bid for the UK’s fourth-largest supermarket group.

Wal-Mart bought Asda in 1999 and its decision to throw its hat into the ring means a fierce three-way fight for Safeway is set to take place.

Sainsbury’s yesterday said it was mulling over a £3.2bn (€4.85bn) offer for the business, just days after Morrisons agreed a £2.9bn (€4.39bn) takeover deal of its own.

But the subsequent fall in Morrisons’ share price means its bid is now valued at under £2.6bn (€3.9), a level seen in the City as loose change for Wal-Mart.