SAFEWAY TAKEOVER FIRST TEST FOR INDEPENDENT COMPETITION COMMISSION

10.59.21am UTC (GMT +0000) Thu 8th May 2003

Commenting on the 'issues' letter released by the Competition Commission outlining their concerns regarding the Safeway takeover bids, Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said:

"Each of the takeover bids for Safeway looks certain to raise issues of consumer choice."

"Each of the rival bidders have substantial political influence and sophisticated lobbying operations. Under the old competition system, the matter would be resolved by politicians listening to these powerful lobbies."

"The new system should ensure that the decision is made on its merits by the Competition Commission. It is imperative for the future that the independence of the Competition Commission is maintained, and the Safeway takeover is an important first test of the new competition regime."