Asda has been linked to a possible bid for Sainsbury’s for some time now, with the latest rumours suggesting that the Wal-Mart owned supermarket group has approached the UK’s competition regulator to see of such a move would be viable. However, the UK unit of Wal-Mart is keeping mum on such speculation.
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According to reports in the UK press, Asda is poised to contact the Competition Commission over the feasibility of an offer for Sainsbury’s, addressing possible anti-trust issues.
Asda is the second largest supermarket operator in the UK, closely followed by Sainsbury’s, which occupies the number three spot. A link-up of the two would create significant competition for market leader Tesco.
While a spokesperson for Asda declined to comment on what she termed “market speculation”, a Wal-Mart representative told just-food that the group views the UK as an important overseas market. “We are very pleased with the performance of our UK business and would hope to continue to grow in this important market,” Wal-Mart said. The company declined to specify whether this expansion was to take the form of organic growth or acquisitive activity.
The ownership of Sainsbury’s has been in the spotlight since a private equity consortium led by CVC announced at the beginning of February that it was considering making a move on the UK’s third largest retailer.
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