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UK: Asda-Sainsbury’s merger referred to phase 2

By  |  September 19, 2018
Britain’s competition regulator referred Sainsbury’s 7.3 billion-pound ($9.60 billion) takeover of Asda for an in-depth review on Wednesday because their stores overlapped in hundreds of local areas.
The Competition and Markets Authority said shoppers could face higher prices or a worse quality of service in places where both chains had shops.
“The companies are two of the largest grocery retailers In the UK and their stores overlap in hundreds of local areas, where shoppers could face higher prices or a worse quality of service,” the CMA said.

The competition regulator will also consider the impact on fuel, general merchandise such as clothing and the joint entity’s increased buying power over suppliers.

The proposed merger, which was announced in April, would see Sainsbury’s take control of Walmart subsidiary Asda in a deal that would create Britain’s biggest grocer by market share, leapfrogging Tesco.

Full Content: Financial Times

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