COMPETITION watchdogs have been granted a six-day extension to deliver their verdict on which of four supermarket rivals should be allowed to bid for Safeway.

Trade and Industry Secretary Patricia Hewitt was due to receive the recommendations of the Competition Commission yesterday, but the deadline was extended to August 18.

In a statement, the Department of Trade and Industry (DTI) said the Commission had asked for an extension following a further meeting requested by one of the interested parties last week. A DTI spokesman refused to confirm reports that the unnamed group was Asda.

DTI minister Jacqui Smith said: "I have decided to give the Competition Commission a six-day extension to ensure that the views of all parties and the group on the issues that have been raised regarding these mergers are accurately reflected in the final report."

Once the report is handed over, the DTI is expected to take about six weeks to digest the findings before announcing its decision - meaning a ruling is now unlikely before the end of September.

Reports have suggested that bids from Tesco, Sainsbury's and Asda will be blocked by the Government on competition grounds.

That would leave the way clear for William Morrison to make an offer.

Anthony Platts, assistant director at stockbrokers, Wise Speke, said: "The decision by the DTI to extend the deadline for the Competition Commission to report on the proposed Safeway mergers leaves us no clearer as to who will eventually win the day.

"Wm Morrison still looks to be odds-on favourite. Even if Morrison does succeed, however, Darlington could eventually see a variety of supermarkets in place as the other groups cherry pick stores where Morrison/Safeway has an over-dominant representation."