The Competition and Markets Authority (CMA) on Thursday, September 27, released information in a detailed explanation of why it last week announced it would refer the proposed merger of grocery store chains Asda and Sainsbury’s for an in-depth investigation.
The CMA found that the planned £12 billion (US$15.7 billion) merger between Sainsbury’s and Asda risks substantially lessening competition in 463 areas where the businesses overlap.
The regulator raised the prospect of a substantial sell-off of stores in order to satisfy the regulator that the deal can go through, as it had previously stated that where stores’ overlap it could mean shoppers facing higher prices or a worse quality of service.
The CMA stated it would not allow the deal to go ahead if its concerns are not fully addressed.
Full Content: The Guardian