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. Last Updated: 07/27/2016

Safeway in Play

LONDON British supermarket stocks were shaken up on Monday after majors ASDA Group and Safeway made a surprise admission over the weekend that they had been discussing a merger.

They said the talks had now been discontinued, without giving details, but analysts suggested the two firms were seeking confidential guidance from British competition authorities.

This move appears to have been blown apart by a report of the plan in the Sunday Telegraph newspaper, analysts said.

"I would certainly not rule a merger out, the assumption is very much that Safeway is in play," said one analyst who asked not to be identified.