ASDA and Sainsbury’s have confirmed that the two supermarkets are set to merge and I think it’s fair to say that both companies will well and truly be in the money should the deal be completed.
Both parties have stated that the merger will result in a fall in grocery prices furthermore it has been stated that the deal will not lead to store closures or job losses in stores.
Shares in Sainsbury’s jumped 15% after news of the merger broke.
Sainsbury’s and ASDA will remain separate brands and no stores will close according to Sainsbury’s Chief Executive Mike Coupe.
Following the merger Argos will open outlets within ASDA stores, the firms said. Sainsbury’s took over Argos in 2016 and has been integrating the catalogue retailer into its own stores.
It is likely that the deal will be scrutinised by the UK’s competition watchdog, the Competition and Markets Authority (CMA). If the merger is completed then the combined total grocery market share for the merged entity would be 31.4%.
The merger is expected to take place in the latter half of 2019 provided the CMA investigation is fast tracked.
If you are an employee of either ASDA or Sainsbury’s who has concerns regarding the forthcoming merger, please contact us online by clicking here or speak to a member of our specialist team on 0333 222 1855.