Sainsbury’s & ASDA Merger To Be Or Not To Be, That Is The Question?

The merge between two of the largest retailers in the United Kingdom is expected to be confirmed in April. This would see two main brands serving a different customer base including, high end shoppers and the general every day shopper. Although, the deal is not yet confirmed as the investment company KKR is reportedly still also looking into the deal. And with the final decision expected to be confirmed by the competition and market authority (CMA) in April, it is still anyones guess what will happen in April.

Sainsbury mentioned that some of the benefits of such a merger would see a decrease in food prices by some 10%-15%. However, other retailers such as Morrision’s have come out strongly against merger, saying it would lead to Sainsbury getting monopoly on the grocery sector. Also it is not understood what the impact of the interest of America investment company KKR, will have on the whole investment dynamics. Whatever the final decision by the Competition and Markets Authority (CMA), it needs to put the customers first before any business. It might be too early to say if Sainsbury is in the money as CEO Mike Coupe sang last year.

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