Sainsbury’s-Asda Merger: What we know and what we want to know

The UK’s second and third largest retailers Asda and Sainsbury’s, valued at £7.3b and £5.9b respectively, have announced plans for a merger.

Currently they each have around 16% of the market, whereas Tesco has nearly double at 28%. The CMA will have to consider whether to stop the merger, which would mean Tesco would continue its dominance as market leader, or to allow the merger whereby creating a near-duopoly and the top two retailers having 60% of the market between them. 

If the deal goes ahead Mike Coupe, CEO of Sainsbury's, will take the helm and Asda’s owner Walmart will acquire a 42% stake in the combined business. It will also allow the two retailers to compete against competition from bigger and smaller companies, in particular by improving it's synergistic benefits - a potential £500m in cost savings.

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