UK: Sainsbury’s-Asda merger raises competition concerns

The UK Competition and Markets Authority has published a summary of views received from interested parties on the impact of the planned merger of Sainsbury’s and Asda, reported Reuters.

The proposed merger of J Sainsbury and Walmart Asda has raised concerns that it could lead to higher prices and reduced choice for customers, the UK competition watchdog said on Monday.

The deal is being closely watched by rivals and competition lawyers to see if the regulator will take into account the role of discounters Aldi and Lidl and online competition when assessing the sector.

On Monday, the CMA published a summary of the representations it had received from a wide variety of parties, including other supermarket groups, wholesalers, suppliers, local government representatives and members of the public.

The CMA said a number of submissions raised concerns about the impact of the deal at the national level – that it would lead to increased concentration in the market with fewer national players and could give rise to higher prices, reduced choice and less innovation.

Full Content: Reuters

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