Pages

Saturday, 28 April 2018

Asda Stores Set To Merge With Sainsbury's In Huge £10BILLION Deal

Asda and Sainsbury's 'in talks' over £10bn merger to take on Tesco
Sainsbury's and Asda are in advanced talks over a merger which would create a new supermarket giant in a shock deal worth £10billion.
Asda stores could become Sainsbury's in the deal that would give the merged supermarkets a bigger share in the grocery market than Tesco.
Hundreds of stores could be sold off for the deal to take place between Sainsbury's and Asda, which is owned by the world's largest supermarket retailer Walmart. 
The deal could be revealed as soon as Monday morning. If Sainsbury's and Asda are to merge, they would have a bigger share of the grocery market than Tesco, which has a 27.6 percent market share.
Sainsbury's has 15.8 percent and Asda has 15.6 percent - so, together, they would move ahead of Tesco, with 31.4 percent of the market.


A Sainsbury's spokesman said: 'J Sainsbury plc ('Sainsbury's') notes the speculation concerning a possible combination with Asda Group Limited.
'Sainsbury's confirms that it and Walmart Inc. are in advanced discussions regarding a combination of the Sainsbury's and Asda businesses. A further announcement will be made at 7am on Monday 30 April.' 

The first Asda store is pictured in West Yorkshire. After running under the name of 'Queens', the Asquith family merged with Associated Dairies to form Asda (Asquith and Dairies) in 1965
The first Asda store is pictured in West Yorkshire. After running under the name of 'Queens', the Asquith family merged with Associated Dairies to form Asda (Asquith and Dairies) in 1965
John James Sainsbury and his wife Mary Ann opened the first ever Sainsbury's store (pictured) in 1869 in London's Drury Lane (pictured right in 1920)
John James Sainsbury and his wife Mary Ann opened the first ever Sainsbury's store (pictured) in 1869 in London's Drury Lane (pictured right in 1920)
The merger, which was first revealed by Sky News city editor Mark Kleinman, would have to be approved by the Competition and Markets Authority (CMA), because the two entities are the second and third largest grocery retailers in the UK.

There is a promise, however, that a deal could be approved after the CMA's decision to allow Tesco to take over Booker, the UK's largest grocery retailer in a deal worth £3.7billion. 
John Sainsbury's (pictured) opened his first store in Drury Lane, London
John Sainsbury's (pictured) opened his first store in Drury Lane, London


This would not be the first time Sainsbury's has acquired another high street giant.
In April 2016, they announced a £1.4 billion takeover of Argos, which led to better than expected results the following Christmas. 

The traditional high street has come under increasing pressure in recent years, with the growth in online retailers.
Sainsbury's and Asda have also been squeezed by the rise of lower-cost supermarkets Aldi and Lidl, who between them have a 12.6 percent grocery market share in the UK.

Joanne McGuinness, Usdaw national officer, said: 'We will be seeking urgent meetings with the businesses to get more detail on what a possible merger will involve.
'Our priorities will be to protect our members and ensure any deal between the retailers does not impact on their jobs or incomes.' 



Tim Roache, GMB general secretary, said: 'Our first priority is to safeguard the job of every single Asda member, both in stores and in distribution. We are demanding an urgent meeting with Asda to get the answers and assurances our members need and deserve.

'GMB will be making sure the voices of supermarket workers are not lost amidst all the talk of mergers and acquisitions. We should never forget these companies' empires are built upon the hard work of their employees.

No comments:

Post a comment