The Competition and Markets Authority (CMA) has launched an investigation into the proposed merger of Asda and Sainsbury’s, outlining the issues it will be considering, including the impact on shoppers and suppliers.
The merger of Asda and Sainsbury’s was first announced in April and could create a company with combined revenues of about £51 billion (US$65.3 billion).
Since the announcement of the deal, the CMA has been gathering the information needed to start its formal investigation and has now confirmed it will begin Phase 1 of its detailed assessment into how the deal could affect competition for UK shoppers.
The regulator will investigate and consider whether the deal could lead to less choice, and therefore higher prices or worse quality services, across the range of products sold by both retailers. As well as being major retailers of groceries, both in-store and online, Sainsbury’s and Asda also compete to sell goods such as fuel, electronics, toys, and clothing.
Full Content: The Telegraph