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Sainsbury’s-Asda merger to hit competition in 463 sites

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UK competition authority has identified 463 sites where the proposed takeover of Asda by Sainsbury could seriously lessen competition.

Last week the Competition and Markets Authority (CMA) referred Sainsbury’s proposed £7.3bn takeover of rival Asda, the British supermarket arm of Walmart, for an in-depth, or “phase 2”, review, saying shoppers could face higher prices or a worse quality of service in places where both chains had shops.

“At a local level, the Parties’ stores overlap in several hundred local areas across the UK,” the CMA said. “The CMA believes that the merger may give rise to a realistic prospect of an SLC in many of these local areas if Sainsbury’s and Asda are insufficiently constrained by other local competitors.”

Both Sainsbury’s and Asda had requested a fast-track to a phase 2 process.

The watchdog has a statutory deadline of 5 March to reach a decision.




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