Home Business News Failed merger cost Sainsbury’s £46m

Failed merger cost Sainsbury’s £46m

by LLB Reporter
1st May 19 9:05 am

The merger between Asda and Sainsbury’s that was blocked by the Competitions Market Authority (CMA) in April has cost the Sainsbury’s £46m.

The CMA blocked the merger over fears the merger would result in higher prices for their customers.

The supermarket giant said like-for-like sales growth slowed in the fourth quarter, sales dropped 0.9% having fell by 1.1% over Christmas.

The year ending 9 March pre-tax profit dropped to £239m compared to £409m the previous year, restructuring costs were £81m with defined benefit pension expenses cost £118m.

Mike Coupe, chief executive told the BBC’s Today programme, “Well, we draw a line under the past.

“The authorities blocked the deal, but we think our business is adapting to the changing world of retail, and we will carry on investing in our business.”

Sainsbury’s will continue to invest in online sales and invest in 400 of their supermarkets in 2020, Coupe said.

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