Sainsbury’s and Asda to lodge application over CMA investigation into £15bn merger
The proposed £15bn merger of Leeds-headquartered Asda and Sainsbury’s was referred for an in-depth (Phase Two) investigation by the Competition and Markets Authority (CMA) on 19 September.
The CMA is assessing whether the merger could lead to a worse outcome for shoppers through higher prices, a poorer shopping experience, or reductions in the range or quality of products offered.
Sainsbury’s and Asda will today lodge an application with the Competition Appeal Tribunal for a Judicial Review of the investigation.
This application is requesting a review of the timetable and process, and reflects that “both Parties’ view that the current timetable does not give the Parties or the CMA sufficient time to provide and consider all the evidence given the unprecedented scale and complexity of the case.”
The application states: “Both Parties have engaged constructively with the CMA to date and have made repeated requests for additional time. Specifically, we have asked the CMA for an additional 11 working days over the Christmas period to respond to a large amount of material recently provided to us.
“We are confident in the merits of the deal and our ability to deliver the synergies. By bringing our two businesses together, we will invest further in range, quality and customer service, while lowering prices and reducing the cost of living for millions of UK households.”
Sainsburys currently operates 606 supermarkets, 815 convenience stores, 311 petrol filling stations and an online grocery business. The supermarket giant, which last year had a turnover of £28.5bn, also operates retail banking services and owns Argos.
Asda, which is owned by American giant Walmart, has 584 grocery stores, 317 petrol filling stations and also operates Asda Money. Last year its turnover stood at £22.2bn.
The CMA previously said that its provisional findings will be unveiled early next year, ahead of the statutory deadline for its final decision on the 5 March 2019.
