THE Somerfield grocery chain could change hands for £1.8bn. The Bristol-based group, which has around 900 stores, has received three offers in recent weeks, a report said.

Somerfield is owned by a consortium including property tycoon Robert Tchenguiz, private equity firm Apax and investment bank Barclays Capital following a £1.1bn takeover two years ago.

But possible buyers could include some of the UK's biggest supermarkets such as Sainsbury's, Morrisons and Asda, which are all looking to increase their town centre store numbers to compete with market leader Tesco, the report says.

Somerfield has avoided competition with the major supermarkets by concentrating on local convenience stores.

But the chain's owners are now set on a sale which could see the group carved up between the UK's leading supermarkets, according to sources.

A sale of Somerfield would be a boost for Mr Tchenguiz, who has suffered recent losses as a major investor in supermarket giant Sainsbury's.

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