Race for Iceland heats up as Asda secures financial backing

Asda has secured financial backing from Barclays Capital to aid its takeover attempt of frozen food retailer Iceland, The Sunday Times reports. However, it is not the only organisation looking to make the acquisition, with Morrisons and Iceland’s own management team also in hot pursuit of the supermarket chain.

Iceland, which has 800 stores in the UK and is highly regarded for its recent performance during unsteady financial times, is currently under the ownership of Icelandic bank Landsbanki. However, with its recent collapse, the supermarket chain is now being sold off via creditors, and a great deal of interest has since been generated.

Despite Asda’s apparent financial backing, many believe that Iceland Founder and CEO Malcolm Walker is still the favourite to take over, as he and other executives at the company already possess a 23% stake.

For Wal-Mart, the North American corporation that owns Asda, the acquisition of Iceland would be a major coup, enabling it to develop its international presence during turbulent trading times on domestic soil.