Sainsbury, Asda merger may hike prices, reduce quality: UK

26 Feb '19

1 min read

Pic: GOV.UK

The UK Competition and Markets Authority (CMA) has found that the proposed deal to merge Sainsbury and Asda could lead to a worse experience for in-store and online shoppers through higher prices, a poorer shopping experience and reduced range and quality of products. It also feels prices could rise at a large number of Sainsbury and Asda petrol stations.

Sainsbury and Asda are two of the biggest supermarket chains in the country.

The CMA has provisional concerns that the merger could lead to a substantial lessening of competition at both a national and local level, the government body said in a press release.

The combined impact means that people could lose out right across the United Kingdom and that the deal could also cost shoppers through reduced competition in particular areas where Sainsbury’s and Asda stores overlap.

These are our provisional findings, however, and the companies and others now have the opportunity to respond to the findings, said Stuart McIntosh, chair of the independent inquiry group carrying out the investigation.

CMA’s final report will be issued by April 30. (DS)

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