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UK: Sainsbury’s and Asda offer to sell 150 stores to push merger through

By  |  March 24, 2019
UK: Sainsbury’s and Asda offer to sell 150 stores to push merger through

J Sainsbury and Asda have offered to dispose of between 125 and 150 supermarkets in an attempt to secure regulatory approval for their proposed £12 billion (US$15.8 billion) tie-up, according to documents filed by the grocers with the Competition and Markets Authority (CMA).

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    The proposed disposal is only half of the roughly 300 stores the CMA stated would need to be offloaded if it were to approve the deal.

    The two grocers also said they would be willing to offload some convenience stores and petrol filling stations, but that they considered that divestiture of the online delivery operations of either company was “not necessary or proportionate.”

    The pledges come on top of public commitments, made earlier last week, to reduce the prices of everyday items by an aggregate £1 billion (US$1.3 billion) no later than three years after completion, and to accept a margin cap on fuel sold by Sainsbury’s.

    Full Content: Financial Times

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