National media reports suggest that Morrisons and Safeway are on the verge of agreeing a £3 billion deal.
The company's advisors met this weekend to negotiate final terms, having dismissed reports of Asda's last minute attempts to scupper the sale with a £2bn bid for just 70 Safeway stores.
The audacious move by Asda is unlikely to stall proceedings that have already dragged out much further than Safeway would ideally have liked.
Safeway has also held out for a bigger bid from Morrisons after its suitor threatened to table a far smaller offering. While the number of stores on offer to Morrisons has dropped following the Competition Commission ruling, Safeway trading has held up very well considering the intensity of speculation surrounding its sale. Proceeds of the sale of the 70 stores, whoever buys them, will also boost the coffers of shareholders of Safeway and Morrisons.
Reported threats by Morrisons to walk away were also dismissed as bluff by Safeway representatives, who believe that Morrisons has come too far and stands to lose too much if it fails to land its catch.
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