Morrisons preparing Iceland takeover deal

Supermarket giant Morrisons is reportedly edging closer to making a £1.5billion takeover bid for frozen food chain Iceland.
The UK’s fourth largest grocery retailer is said to be preparing a deal for the 750 Iceland stores across the UK, which would triple its store portfolio and boost its market share from 12 per cent to 14 per cent.
This would take it nearer to rivals Sainsburys and Asda, which hold a 16 per cent and 17 per cent slice of the UK grocery market respectively.
A successful takeover would also give Morrisons a boost in the south east, as well as a large network of convenience stores – both key targets for chief executive Dalton Philips.
The auction process for the Iceland chain, which has been on sale since the collapse of Icelandic bank and former owner Landsbanki in 2008, will kick in September.
Iceland founder and chief executive Malcolm Walker, who has together with its senior management has a 26 per cent stake in the chain, is also planning on making a bid and has the right to match any offer.