The UK's second biggest supermarket chain has created the contingency plan, which would put itself in a position to bid for some of the Safeway stores even if its right to bid for the chain outright is blocked by the Competition Commission.
Asda, owned by Wal-Mart, is said to be desperate to mount a challenge to the market share supremacy of leader Tesco, and is now prepared to team up with a private equity bidder to strengthen its own store portfolio.
The pendulum has swung firmly in favour of Morrisons in the bidding process, if the speculation in the UK national media is to be believed. But the frantic behind-the-scenes work of Asda in recent weeks, which has not been matched by either Tesco or Sainsbury's, who are not expected to be cleared to bid either, would seem to reflect a perceived need to be involved.
Certain private equity houses have already voiced an interest in making a bid should Morrisons win the day, and Asda's hope is that a deal to buy some stores from the eventual winner will smooth any takeover process financially.
Wal-Mart has purportedly desired Safeway for much longer than the length of the current bidding process, with speculation as far back as 12 months ago pointing to an Asda takeover. The addition of Safeway would allow the chain to move onto another level in market share terms, which coupled with impressive sales growth in the last 18 months, could transform Asda into an irresistible force at the top of the supermarket league.
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