Sainsbury’s-Asda merger cancelled after CMA blocks deal

Supermarket chain Sainsbury’s has announced this morning that it has terminated its planned merger with retailer Asda.

The news follows the publication of a final report by the Competition and Markets Authority (CMA) prohibiting the merger, a decision which Sainsbury’s CEO Mike Coupe says is “effectively taking £1 billion out of customers’ pockets”.

Both brands have mutually agreed to terminate the transaction in light of the CMA report, which comes after the authority expressed concerns that the merger would cause higher prices, lack of competition and a poor shopping experience.

Mike Coupe commented: “The specific reason for wanting to merge was to lower prices for customers. The CMA’s conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market.

“Sainsbury’s is a great business and I am confident in our strategy. We are focused on offering our customers great quality, value and service and making shopping with us as convenient as possible.”

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