Tommy Tainant
Diamond Member
Sainsbury's/Asda mega merger is formally blocked by CMA
Sainsbury's and Asda have called off their planned £13bn merger after it was formally blocked by the competition regulator on the grounds it would lead to higher prices.
The pair admitted defeat after the Competition and Markets Authority (CMA) completed its final report on the tie-up - first announced a year ago - saying it had not shifted from its view that shoppers and motorists using their petrol stations would be "worse off".
A merger would have created the largest player in the UK grocery sector, claiming more market share than the current leader Tesco.
I mentioned this a year ago and my opinion then was that it was a non starter.The regulator has done its job. Asda is owned by Wal Mart. I think their only options now are a float or management buy out.
Sainsbury's and Asda have called off their planned £13bn merger after it was formally blocked by the competition regulator on the grounds it would lead to higher prices.
The pair admitted defeat after the Competition and Markets Authority (CMA) completed its final report on the tie-up - first announced a year ago - saying it had not shifted from its view that shoppers and motorists using their petrol stations would be "worse off".
A merger would have created the largest player in the UK grocery sector, claiming more market share than the current leader Tesco.
I mentioned this a year ago and my opinion then was that it was a non starter.The regulator has done its job. Asda is owned by Wal Mart. I think their only options now are a float or management buy out.
