Asda And Sainsbury’s A Step Closer To Merging After Confirming Plans
Britain's soon-to-be biggest supermarket chain is a step closer to reality after Asda and Sainsbury's confirmed plans to merge.
News broke at the weekend that the number two and three largest UK grocers wanted to form one big ole chain to usurp Tesco from the top spot.
The merger is tipped to cost a whopping $10 billion (£7.3 billion) and it would reportedly be the biggest move since Morrisons took over Safeway in 2004.
Walmart, who owns Asda, will reportedly get a 42 percent slice of the combined company.
While there was a lot of excitement about the move at the weekend, people were mainly concerned about what this delicious merger will be called: Asbury's or Sainsda.
However in statements released by both companies it's been confirmed that they will retain their own brand identities and names - which is a damn shame because I think we could have all enjoyed saying Asbury's or Sainsda.
But the big takeaway from all of this is that prices for 'everyday items' could be 10 percent cheaper according to a Sainsbury's spokesperson.
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Sainsbury's chairman David Tyler has released a statement, saying: "We believe that the combination of Sainsbury's and Asda will create substantial value for our shareholders and will be excellent news for our customers and our colleagues.
"As one of the largest employers in the country, the combined business will become an even greater contributor to the British economy.
"The proposal will bring together two of the most experienced and talented management teams in retail at a time when the industry is undergoing rapid change."
Head of Asda Roger Burnley adds: "The combination of Asda and Sainsbury's into a single retailing group will be great news for Asda customers, allowing us to deliver even lower prices in store and even greater choice.
"Asda will continue to be Asda, but by coming together with Sainsbury's, supported by Walmart, we can further accelerate our existing strategy and make our offer even more compelling and competitive."
The UK benefits from having such a diverse range of supermarket retailers because it drives competition. But this planned merger between the second and third largest grocers has worried some that competitive edge might be a bit duller.
There were even calls for the competition watchdog to investigate it.
Once the finer details are smoothed out between Sainsbury's and Asda, they can submit the proposal to the Competition and Markets Authority who will eventually decide whether it can proceed.
Featured Image Credit: PA