Sainsbury's: cancels merger amid opposition to deal

(CercleFinance.com) - British retail giant Sainsbury's and supermarket chain Asda said that they have agreed to terminate their planned merger after the British antitrust authority opposed the deal.


The Competition and Markets Authority (CMA) has blocked the merger after finding that it would lead to "increased prices in stores, online and at many petrol stations across the UK."

"The specific reason for wanting to merge was to lower prices for customers," Sainsbury's CEO Mike Coupe said in reaction to this.

"The CMA's conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market," he added.

Investors were reacted badly after the news, with the London-listed Sainsbury's shares down 5% in morning trading.

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