Big three incur Safeway ban

Big three incur Safeway ban

Big three incur Safeway ban

The UK's three biggest supermarkets groups are set to face a ban of at least five years on any attempt to buy or break up Safeway, according to a report in the Financial Times.

The news comes as competition watchdogs prepare to start detailed negotiations with Tesco, Asda and Sainsbury's in the wake of last week's government ruling on the battle for Safeway.

The Office of Fair Trading (OFT) has said the undertakings would have to be permanent, although it would promise to review them. The competition watchdog normally reviews such undertakings after five years, but stressed that a review that did not mean changes to the rules were guaranteed.

The OFT said the undertakings were necessary to safeguard Safeway's position, because the commission had decided that a sizeable fourth player was needed to ensure competition.

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