Asda to buy 12 stores in Northern Ireland from Morrisons
The sale of 12 stores and four development agreements in the province for £73.6m is part of Morrisons' strategy of concentrating on the UK mainland.
07/06/05 Morrisons has agreed to the sale of its Safeway operations in Northern Ireland to Asda, according to a report on UK Web site The Retail Bulletin.
The sale of 12 stores and four development agreements in the province for £73.6m is part of Morrisons' strategy of concentrating on the UK mainland. The stores all trade under the Safeway fascia, and were part of the Safeway business acquired by Morrisons last year.
The deal will need regulatory approval, with Morrisons expecting completion to take place over a 10 week period commencing in September.
The deal marks an entry for Asda into the Northern Irish market.
Once converted, the acquisition will add to Asda's overall UK market share, helping the Wal-Mart-owned chain maintain its position in the increasingly competitive grocery market.
Asda said the conversion of all the Safeway stores will take around three months once the transaction is approved. More than £30m will be spent on modernization and refurbishment of the stores over the next two years.
All existing staff will be retained, with around 250 additional employees recruited by Christmas to handle the expanded non-food offer.
