Morrisons, the UK’s fourth-largest supermarket, is reportedly considering making a move for frozen food retailer Iceland.
The Bradford-based retailer is expected to join rival Sainsburys and other retailers in bidding for Iceland Foods if the sale of a majority stake in the company triggers an auction for the entire value of the grocery retail chain.
According to newspaper reports, the Resolution Committee of failed Icelandic Bank, Landsbanki, is in the process of appointing investment banking advisers to sell its majority 67 per cent holding in the 750-store supermarket, which is valued between £1.7bn and £2bn.
Morrisons is believed to be evaluating which parts of Iceland’s store portfolio best serve its expansion plans. The Financial Times reports that a move for the frozen food retailer would fit with its plans to develop a chain of convenience stores across the UK.
Sainsbury’s said last week that it would examine Iceland Foods if and when it comes onto the market.
Neil Sachdev, the company’s property director, commented: “Everyone is looking at Iceland. When and if it comes up for sale then we will take a look. What we don’t know is if Iceland will be sold whole or just broken up”.
