Asda and Sainsbury’s, two of the UK’s biggest supermarkets, have announced a merger. The deal, which is still subject to regulatory approval, would see the two companies become one, creating a new retail giant.
The move comes as the UK’s grocery market is under unprecedented pressure, with consumers moving away from traditional supermarket chains in favour of discount retailers such as Aldi and Lidl.
Asda and Sainsbury’s have been struggling to keep up with these changes, and have been losing market share in recent years. The merger would allow them to pool their resources and better compete with their rivals.
It is not yet clear how the merger would affect consumers, but it is likely that there would be some store closures and job losses. The two companies have said that they are committed to minimising the impact on employees and customers.
The merger is still subject to approval from the Competition and Markets Authority (CMA), which is expected to take several months. If it goes ahead, it would create a supermarket chain with around 31% of the UK grocery market.
