MUSGRAVE-SUPERQUINN DEAL WORRYING MOVE FOR SUPPLIERS - The Musgrave retail group has agreed to buy Superquinn from the receivers appointed to the latter overnight. Any deal would be subject to approval by the Competition Authority. Musgrave's Supervalu brand has just under 24% of the Irish grocery market. Adding Superquinn's 6.4% share would take it to around 30% and push it ahead of Tesco as the biggest supermarket player in the country. Between them, Tesco, Musgrave and Dunnes would control 70% of the grocery market.
John Bryan, the president of the Irish Farmers' Association, says that Superquinn had been seen as a good supporter for Irish producers as they had bought high quality produce from the country's farmers and growers. But he says the fact that one of the main three players in the grocery market here is buying another medium sized player is a cause of concern for producers. He says the three major players have huge buying power and expressed concern that producers would be squeezed for lower prices as a result. The IFA president called for a meaningful code of practice for retailers to make sure that farmers won't come under pressure and consumers won't get ripped off.
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MORNING BRIEFS - There is yet more intrigue at News Corp to report this morning.
Bloomberg cites anonymous sources as suggesting that the company is prepared to replace Rupert Murdoch as chief executive depending on how he and his son James fare under questioning at a Parliamentary committee in London today over the phone hacking scandal at the News Of The World. Bloomberg says Chase Carey, currently chief operating officer at News Corp, is the man who would be Rupert if his boss doesn't perform. Reuters, meanwhile, has a conflicting account of the state of play. It quotes a board member at News Corp saying the board fully supports Rupert Murdoch and is 'totally behind top management'.
*** Having rallied above $1.41 yesterday the euro slid back this morning in Asian trading. Overnight the market news was gloomy on both sides of the Atlantic with Wall Street down and all of the western European indices falling too. Italy's Mibtel was the biggest one day casualty - down 3.1% to its lowest level in two years. Investors are reacting to the European banking stress tests, the gathering storm clouds ahead of an emergency EU leaders meeting on Thursday with the Greek default question requiring a definitive answer.
*** On the currency markets, the euro is worth $1.4107 and 87.8 pence sterling.
