Asda and Sainsburys could merge, according to reports

Posted: 30 Apr 2018

Sainsbury's and Asda are in advanced talks over a merger which would create a new supermarket giant.

The deal would be worth £10 billion and could be announced as early as Monday.

It would mean that Britain's second and third largest food retailers would become a more powerful rival to Tesco.

Sky News has reported that the two companies are in negotiations about combining Wal-Mart's Asda business in a move set to send shockwaves through the British retail industry.

It is currently unclear how a deal would be structured and if the combination would secure approval from the Competition and Markets Authority.

Sources have stated that an official announcement could be made on Monday, or earlier if the two sides are forced to publicly reveal plans.

Both stores have faced growing competition from German budget grocers Aldi and Lidl.

It has been suggested the potential tie-up follows the CMA's decision to give Tesco's £3.7bn takeover of wholesaler Booker the green light.

They said it has given others a nudge into exploring further industry-shaping connections.

A Sainsbury's Asda merger would undoubtedly be under the regulators' microscope as buying power increases.

The deal could allow the two companies to provider cheaper products, and more of them, a source close to Wal-Mart said.

Chief executive of Sainsbury's, Mike Coupe, is said to be one of the driving forces behind the potential hook-up.

Sainsbury's and Asda have been approached for comment by the Daily Mirror.



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