Somerfield is under the spotlight of the Competition Comission, which has launched an inquiry into its purchase of 114 Safeway stores from Morrisons.
The retailer said it was disappointed by the authority’s decision, but remained confident of a favourable outcome when the commission reports, sometime before September 6.
Somerfield said it had carried out a thorough investigation of competition issues before buying the stores and had taken legal advice.
However, the Office of Fair Trading said that 22 mid-range stores and a single one-stop shop from the 114 stores raised possible competition considerations.