 Morrisons tabled its initial bid for Safeway in January 2003 |
Morrisons, the supermarket chain at the centre of a �3bn ($5.2bn) takeover bid for rival grocer Safeway, has reported record sales over Christmas. The UK company said like-for-like sales, including petrol, jumped 10.2% in the six weeks to January 4.
Analysts believe family-run Morrisons' strong performance over the period could outpace rival supermarket groups.
Currently the UK's fifth biggest chain, the acquisition of Safeway will double Morrisons' market share.
Stronger finish
In December, Bradford-based Morrisons agreed to offer one of its shares plus 60p in cash for each Safeway share.
Earlier, the Competition Commission blocked rival bids from the UK's other main supermarket groups - Tesco, Sainsbury's, and Wal-Mart-owned Asda - after Morrisons made its initial all-share �2.9bn bid in January 2003.
Morrisons said it hoped to complete the tie-up, which has the backing of Safeway directors, by March.
Food retailers are expected to have had a stronger finish to 2003 than non-food retailers, which struggled as consumer spending slowed.
The update from Morrisons comes a week after Asda reported a record festive season, with 18 million transactions in the week before Christmas.
However, despite the positive sales news, shares in Morrisons were a touch lower in early trading on the London Stock Exchange, down 2.25p at 229.75p
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