Sainsbury’s and Asda £12 billion merger will be investigated by competition Watchdog

  • Sainsbury’s and Asda £12 billion merger will be investigated by competition Watchdog
    Independent.t. E.
    The competition watchdog has initiated a formal investigation of the proposed £12 billion merger between Sainsbury’s and Asda.
    https://www.independent.ie/business/world/sainsburys-and-asda-12bn-merger-to-be-investigated-by-competition-watchdog-37245022.html
    https://www.independent.ie/incoming/article37244419.ece/1a3b8/AUTOCROP/h342/ipanews_5896be21-452e-4574-9dee-5065a655cfcf_embedded235271735

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The competition watchdog has initiated a formal investigation of the proposed £12 billion merger between Sainsbury’s and Asda.

The transaction should be subjected to phase 1 probe, to assess how it may affect competition on British buyers, competition and markets authority (cma) confirmed on Thursday.

An investigation of the CCA will consider whether the jam can lead to less choice, higher prices and worse quality services.

It will also be whether the combined company could use its increased purchasing power to “squeeze suppliers” and that this may have potential consequences for buyers.

Sainsbury’s and Asda went on record, saying that the suppliers will bear the brunt of the collateral to bring down the price of everyday products after their Union.

Andrea Coscelli, Director of CMA, said: “About £190bn each year to spend on food and products in the UK so it is very important to find out if the millions of people who shop in supermarkets may lose as a result of the transaction.

“We will conduct a thorough investigation to determine if the merger may lead to higher prices or lower quality services for customers and will not allow him to go forward, if there are any problems, we find a completely understand.”

It is also expected that dozens of warehouses will be unloaded in the framework of the competition.

Sainsbury’s and Asda have asked the CMA to go on to advanced phase 2 part of the query via the accelerated process.

Although in most cases a full phase 1 investigation is needed to determine whether the transaction can be cleared and whether further study is that a merger can ask the CMA to move to the second phase early.

SMA said it expects to make the request if it receives any valid objections.

Sainsbury’s and Asda claimed to shock the Internet, announced earlier this year will result in cheaper everyday items, although it is still not known where the lower prices will fall.

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