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Supermarkets

Asda Sainsbury’s merger blocked for 10 years

The Competition and Markets Authority (CMA) has prohibited Asda and Sainsbury’s from working with each other until 29 July 2019 after it blocked the supermarkets’ attempt at a merger.

Concluding its investigation into the merging of the supermarkets, the order came into force on 9 July 2019 as it said the “creation of that situation may be expected to result in a substantial lessening of competition” in local and national markets, online delivered groceries, and the retail supply of fuel.

The merger would have been worth £13bn and would have resulted in the companies taking a 31% share of the grocery sector.

The order applies to Asda, Sainsbury’s and Walmart.

Sainsbury’s incurred costs of £46m while Asda’s sales slipped after the CMA blocked the merger in April.

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