Iceland break-up averted by Walker's bid

Malcolm Walker stepped in with a £1.45bn winning bid for Iceland Foods because he didn’t want the company he founded to be broken up, a source close to the deal has told The Grocer.

“Malcolm wanted to keep his staff together,” said the source. “He didn’t want this process to keep going on. He could afford to make a winning bid, so he did.”

The news brings an end to the epic 12-month auction for the 77% of Iceland shares put up for sale last year by bankrupt Icelandic banks Landsbanki and Glitnir.

The Grocer has tracked the auction, maintaining throughout that Walker was favourite to win back the chain he founded from a single store in 1970. Walker is now expected to complete the deal within the next three weeks.

Walker didn’t want the business to go the way of Peacocks, the defunct fashion chain which is at risk of being broken up as administrators hunt for a buyer, the source added.

“Walker wanted to look after Iceland as a business,” the source added. “He didn’t want it broken up and sold off to people, or owned by private equity. He wants it to continue to be a great British business.”