Watchdog launches probe into Sainsbury’s-Asda merger

UK’s competition watchdog has launched a formal investigation into the proposed merger between Sainsbury’s and Asda.

The Competition and Markets Authority (CMA) said it will begin the first phase of detailed assessment into how the £7.3bn deal could affect competition for British shoppers. The investigation will look at whether the deal could lead to less choice, and therefore higher prices or worse quality services, across products sold by both companies, the regulator said.

An Asda spokesperson told media: “We are confident the CMA will take a rigorous and evidence-based approach to their assessment of this deal and we will work closely with them to support the process.”