A PYMNTS Company

UK: CMA blocks Sainsbury/Asda deal

By  |  April 25, 2019
Britain’s competition regulator has blocked Sainsbury’s proposed 7.3 billion pound ($9.4 billion) takeover of Walmart owned Asda.  

The Competition and Markets Authority (CMA) said in its final report on Thursday that the deal would lead to increased prices in stores, online and at many petrol stations across the UKSainsbury’s, Walmart and Asda said they had mutually agreed to terminate the transaction. Sainsbury’s and Asda agreed the deal in April last year. As well as overtaking market leader Tesco, it also would have given Walmart a way to exit Britain, one of the weakest performers in its global portfolio.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    However in its final report the CMA found that UK shoppers and motorists would be worse off if Sainsbury’s and Asda merged.

    It concluded that the deal would result in a substantial lessening of competition at both a national and local level.

    It said this would mean shoppers right across the UK would be affected, not just in the areas where Sainsbury’s and Asda stores overlapped.

    “We have concluded that there is no effective way of addressing our concerns, other than to block the merger,” said Stuart McIntosh, chair of the CMA inquiry group.

    Full Content: Gov UK, CNBC

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.