Sainsbury\'s and Asda merger blocked

Sainsbury's and Asda merger blocked

The Competitions and Markets Authority has blocked a proposed merger between Sainsbury's and Asda because of concerns about how it would affect prices.

The merger could have been worth £15 billion.

But the market regulator put an end to any executive hopes- saying that prices could have been driven up by a lack of competition.

The CMA released its report following a two-part inquiry into the proposals.

Stuart McIntosh, chair of the inquiry group, 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.

We have concluded that there is no effective way of addressing our concerns, other than to block the merger.

Published: by Radio NewsHub
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