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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Sainsbury's and Asda banned from merging for at least 10 YEARS

Two of Britain's biggest supermarkets have been banned from merging for at least a decade, after a proposed £12billion takeover was blocked in April.

Competition watchdog the CMA, which rejected a deal between Sainsbury's and Asda earlier this year, has now banned the two grocers from merging for 10 more years.

It comes just months after a major investigation found "extensive concerns" over the multi-billion-pound takeover, which the CMA said would lead to higher prices on food and fuel and a poorer overall shopping experience for customers.

It said the merger - first proposed last April - would reduce competition in the market would cause more harm than good for the grocery sector.

However, both Sainsbury's and Asda disputed the claims, claiming 125 and 150 supermarkets would be sold off on the back of the takeover to maintain competition with industry rivals.

Bosses also claimed that if given the go-ahead, they would reduce prices by around 10% on everyday items.

This week, the CMA prohibited Sainsbury's from acquiring a stake in Asda or any of its subsidiaries or from buying an interest in any business that has a holding interest in Asda for the next 10 years.

The rules will be bound until July 9, 2029, unless the parties receive the "prior written consent of the CMA".

Stuart McIntosh, at the CMA, said: “It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week.

"Following our in-depth investigation, we have found this deal would lead to increased prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers."

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