The merger is being investigated by the Competition and Markets Authority (CMA) in order to establish whether it will lead to reduced customer choice, worse service or higher prices. The company would be the UK’s largest retail chain, comprised of 73 stores and 31.4% of the grocery market. Sainsbury’s and Asda, which has been owned by Walmart since 1999, are the second and third largest supermarkets in the UK. The deal would see Walmart retain 42% of the firm. Analysts estimate that the CMA will recommend that 6%, or 2,800, of the combined group’s stores be sold.
The merger is being investigated by the Competition and Markets Authority (CMA) in order to establish whether it will lead to reduced customer choice, worse service or higher prices. The company would be the UK’s largest retail chain, comprised of 2,800 stores and 31.4% of the grocery market. Sainsbury’s and Asda, which has been owned by Walmart since 1999, are the second and third largest supermarkets in the UK. The deal would see Walmart retain 42% of the firm. Analysts estimate that the CMA will recommend that 6%, or 73, of the combined group’s stores be sold.