2/20/2019, 8:55 AM (Source: TeleTrader)
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Sainsbury's-Asda tie-up faces UK watchdog's concerns

The Competition and Markets Authority of the United Kingdom said on Wednesday that it found "extensive competition concerns" in regards to the proposed £10 billion merger between British supermarket chains Sainsbury plc and Asda Group Ltd. The watchdog underlined that it is "likely to be difficult" for the companies to address the concerns of possible higher prices, less choice and a generally worse experience for consumers.

As some of the potential solutions for the deal to go through, the CMA has proposed that the companies sell off "a significant number of stores and other assets - potentially including one of the Sainsbury’s or Asda brands," so that competition on the market wouldn't be jeopardized.

Sainsbury's and Asda said in a joint statement said that the findings " fundamentally misunderstand how people shop in the UK today and the intensity of competition in the grocery market." Mike Coupe, CEO of Sainsbury's, the second largest supermarket chain in the country, told BBC his company will submit "very strong representations" to the CMA about the flaws in its analysis.

Breaking the News / NI