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Asda And Sainsbury's 'In Talks To Merge'

Stewart Perrie

| Last updated 

Asda And Sainsbury's 'In Talks To Merge'

They're two of the biggest supermarket retailers in the UK, but Sainsbury's and Asda could soon merge together to create one company.

Sky News reports that negotiations are underway between the two entities and they'll have to work out whether the merger would be sanctioned by the Competition and Markets Authority.

They're currently the second and third largest grocers in the UK, but this combination could knock Tesco off of top spot.

Credit: PA
Credit: PA

Because they're such massive entities in their own right, the process could be pretty difficult in working out who gets what. What I think we're all more interested in is whether it will become Asbery's or Sainsda?

Sky News adds that if the merger were to happen, it would give them a much stronger position in the British grocer war, which has faced a decent level of competition from German retailers Aldi and Lidl.

It would also reportedly be the biggest takeover since Morrisons took over Safeway in 2004.

The merger would cost roughly £10 billion.

Credit: PA
Credit: PA

Whatever happens, the customer just hopes that at the end of the day, prices aren't greatly affected. The benefit of having multiple retailers to choose from is that there is a price war - which isn't always good for suppliers.

TCC Global analyst Bryan Roberts said: "It would be a fascinating combination: creates a huge power - not just in food but also clothing, household goods and toys.

"I can't see the regulators swallowing it without significant disposal of duplicate sites however."

Bloomberg notes that Asda is known for being on the cheaper side, whereas Sainsbury's is more for an 'affluent crowd' and therefore questions are being raised over what price tag will win in the proposed merger.

Featured Image Credit: PA

Topics: News, supermarket, sainsbury's, UK, Asda

Stewart Perrie
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