Morrisons in takeover talks with Iceland

Author: David Linklater

As you may have heard in the newspapers recently, there has been much speculation about the possible takeover of Iceland by Morrisons.  The 40-year-old Iceland chain has been put up for auction by the Resolution Committee of Landsbanki, the failed Icelandic bank that took ownership as a creditor of Icelandic retail group Baugur.
It is suggested that this would give Morrisons the much needed boost to rival their nearest competitors by increasing the company’s market share by about 2% to 14%, bringing it nearer to its closest rival, Sainsbury’s, which has a 16% share of the sector.
Iceland has roughly 800 stores, mainly focused on high streets which will mean Morrisons get a long awaited foothold on the high street market and be a more dominant force in the South East.
There is also speculation that rival supermarket chains Sainsbury and Asda are interested in buying the majority stake in the frozen food retailer. Another name linked with the takeover is Iceland chief executive Malcolm Walker who already owns 26% and made an offer on the remaining shares of £1bn last year.
The sale process begins in September when all eyes will be watching to see what happens to the iconic brand and whether it retains its position in the market as a leading provider of discounted frozen foods or whether the new owner will try to re-brand.