Asda and Sainsbury’s, two of the UK’s biggest supermarkets, have announced a merger. The deal, which is subject to regulatory approval, will see the two companies combine to create a new supermarket giant.
The two companies have been in talks for several months and the deal is expected to be completed by the end of the year. If approved, it will create a company with more than 2,800 stores and a market share of around 30%.
The move comes as the UK’s supermarket sector is under intense pressure from rising costs, competition from discount retailers and changing consumer habits.
As part of the deal, Sainsbury’s will take over Asda’s grocery business and the two companies will operate as separate businesses under the same umbrella. However, they will have the same CEO, Mike Coupe.
The merger is likely to lead to job losses and store closures as the two companies look to cut costs. It is also likely to trigger a wave of consolidation in the UK supermarket sector as other companies look to compete with the new giant.
