retail news in context, analysis with attitude

In the UK, rumors are rampant that Wal-Mart’s Asda Group has discussed a possible takeover of Safeway Plc with the government’s Office of Fair Trading.

Safeway has been identified as a likely takeover target because of its largely ineffectual moves to compete with Tesco and Asda, and because its stock price is depressed.

Some local experts believe that the government wouldn’t allow such an acquisition because Asda’s strong recent performance wouldn’t allow it to argue that it needs to buy Safeway in order to compete with Tesco. But others believe that such a deal is just a matter of time.
KC's View:
We’ll believe almost anything, and this one sounds persuasive.