Somerfield has put itself up for auction, according to press reports, with Asda, Sainsbury’s and Morrisons all touted as potential buyers.
Newspapers including the Financial Times, The Times and Daily Telegraph are reporting this morning that Somerfield’s backers – who include property tycoon Robert Tchenguiz, Barclays Capital and private equity group Apax – have appointed Citigroup to run the auction.
The current owners bought Somerfield for £1.8bn two years ago. They are now thought to value the 955-strong supermarket chain at £2bn to £2.5bn.
The FT reports that Citigroup is looking to sell the company in one block, but that other retailers are likely to want only pockets of stores.
Members of the Big Four, however, are likely to wait until the outcome of the Competition Commission inquiry into supermarket competition before considering a deal.
