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September 19, 2018

Sainsbury’s merger with Asda referred for in-depth investigation

The planned merger between UK supermarkets Sainsbury's and Asda is being referred for an in-depth "phase two" investigation by the country's competition watchdog.

The planned merger between UK supermarkets Sainsbury’s and Asda is being referred for an in-depth “phase two” investigation by the country’s competition watchdog.

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The UK’s Competition and Markets Authority (CMA) said the deal raises sufficient concerns to be referred for a more in-depth review.

“The companies are two of the largest grocery retailers in the UK and their stores overlap in hundreds of local areas, where shoppers could face higher prices or a worse quality of service,” it said.

These concerns will be considered further in the investigation, along with other issues raised so far with the CMA – including increased ‘buyer power’ over suppliers.

The phase-two investigation will be led by an inquiry group chosen from the CMA’s independent panel members. This will be chaired by Stuart McIntosh, with the other members being Roland Green, John Thanassoulis, Richard Feasey and Claire Whyley. The group will gather evidence – in particular through multiple customer surveys and engagement with other retailers, suppliers and industry bodies – to inform its analysis.

An issues statement, setting out in detail the issues that the inquiry group expects to investigate, will be published in the coming weeks. Members of the public and other interested groups will be invited to give their views on this.

The CMA’s full referral decision and expected timelines for its Phase 2 investigation will be published shortly.

Sainsbury’s and Asda announced their plans to merge back in April.

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Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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