The supermarket giants Asda and Sainsbury’s have announced a merger which will create Britain’s biggest retailer.
The deal, which is worth £12bn, will see the two companies operate under the Sainsbury’s brand but keep their own separate identities.
The move comes as the UK’s grocery market faces intense competition from discount retailers such as Aldi and Lidl.
Asda and Sainsbury’s said the merger would lead to “significant cost savings” and would help them compete against these rivals.
Sainsbury’s chief executive Mike Coupe said the deal would create “a dynamic new force” in UK retail.
“The combined business will be an even stronger competitor, with an offer that meets the needs of customers today and helps them to prosper in the future,” he said.
Asda boss Roger Burnley added that the merger would allow the two companies to “invest more in price, quality, range and service”.
The deal is subject to approval by shareholders and regulators, but if it goes ahead it is expected to be completed by late 2019 or early 2020.
The proposed merger between Asda and Sainsbury’s would create Britain’s biggest retailer, with a market share of over 30%.
It is hoped that the deal will lead to “significant cost savings” for the two companies, who are facing intense competition from discount retailers such as Aldi and Lidl.
The deal is subject to approval by shareholders and regulators, but if it goes ahead it is expected to be completed by late 2019 or early 2020.
What will happen if Asda and Sainsbury’s merge?
If the merger between Asda and Sainsbury’s goes ahead, it will create Britain’s biggest retailer with a market share of over 30%. It is hoped that the deal will lead to “significant cost savings” for the two companies. The deal is subject to approval by shareholders and regulators but if it goes ahead, it is expected to be completed by late 2019 or early 2020.
