Asda has taken a step closer to acquiring frozen food retailer Iceland after lining up financial backing for a bid, it was reported today.
The supermarket chain, which is owned by U.S. retail giant Wal-Mart, has won support from Barclays Capital, the Sunday Times said.
But Asda still faces tough competition from Morrisons and Iceland's own management team in the takeover battle.
Iceland is being sold off by creditors to Icelandic bank Landsbanki, the collapsed bank that took control of the 800-strong chain in 2008. Potential bidders are expected to receive sales information this week.
Iceland has boomed since the economic downturn as sales of frozen food have grown because consumers consider it to be good value for money. More...