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Sainsbury’s and Asda hit back at claims merger would harm customers

Sainsbury’s records strong sales but foresees challenges ahead

Following criticism last month from the Competition and Markets Authority about the impact on customer choice and prices of Sainsbury’s and Asda merging, Mike Coupe, chief executive of Sainsbury’s, and Asda’s chief executive, Roger Burnley have issued a joint statement contesting the authority’s findings and stressing the benefits for customers regarding savings :

“We are trying to bring our businesses together so that we can help millions of customers make significant savings on their shopping and their fuel costs, two of their biggest regular outgoings. We are committing to reducing prices by £1bn per year by the third year which would reduce prices by around 10% on everyday items. We are happy to be held to account for delivering on this commitment and to have our performance independently reviewed and to publish this annually”.

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Shadow cast over merger between Sainsbury’s and Asda

Asda trials removal of plastic fruit and veg bags 

The merger between giant UK supermarket chains Sainsbury’s and Asda is in serious doubt following an appraisal by the Competition and Markets Authority (CMA) which said customers could see higher prices and less choice if the two companies combined. The value of Sainsbury’s shares plummeted 15% after the announcement by UK’s competition watchdog, which said the deal could be blocked deal or that it may force the sale of a large number of stores or even one of the brand names. In its provisional report on the proposed merger, the CMA added that it was likely to be difficult for the chains to address the concerns and that the merger could lead to a poorer shopping experience. The CEO of Sainsbury called the findings “outrageous”.