Delyn MP’s ‘deep concern’ over proposed Sainsbury’s – Asda merger following competition watchdog report
The proposed multi-billion pound merger between Sainsbury’s and Asda could see a “substantial lessening of competition” in 463 areas the Competition and Markets Authority (CMA) has said.
The CMA published the results of its Phase 1 investigation into the proposed merger this week, it says Sainsbury’s and Asda stores “overlap in several hundred local areas across the UK”.
The deal could see the supermarket giants forced to sell over 460 stores before any planned merger goes through.
Sainsbury’s and Asda both have stores in Flint, Delyn MP David Hanson wants assurances no jobs will be lost in the town, Mr Hanson said:
“As Flint has both a Sainsbury’s and Asda next door to each other the merger proposals are of deep concern.
The findings in the CMA phase one investigation stated that there is a distinct possibility that stores will have to be sold to ensure competition levels are maintained.
“Asda and Sainsbury’s employ a large number of people in Flint and we need assurances that they will have job security going forward.
We are a long way off the final decision being made by the CMA on how these companies will have to proceed, but I am watching closely to ensure any decision made does not negatively impact on employees or customers of these stores.”
The CMA is progressing to Phase 2 of its investigation which will determine whether the merger, valued at around £12 billion, will go ahead.
Sainsbury’s and Asda said in a statement:
“The grocery market has changed significantly in the last decade and is more competitive than ever, with the rise of discount formats, online grocery and food delivery businesses.
We look forward to working with the CMA on the Phase 2 inquiry, where we expect it to conduct a full review of the market and take these changed market dynamics into consideration.”
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