Sainsbury’s and Morrisons held merger talks
Officials said exploratory talks this year would have created a supermarket with a 23.6% market share, still behind Tesco on 27.8%.
Mateo Fernandez ·
Sainsbury’s and Morrisons held exploratory talks this year about a potential multibillion-pound merger, officials said. Reaction pending.
Combined 23.6% market share
Officials said a deal would have combined the two chains to about a 23.6% share of the UK grocery market, compared with Tesco on 27.8%. The talks were described as exploratory and are believed not to be live now, officials said.
A merger of that scale would concentrate buying power and logistics for the combined group, changing the dynamics with suppliers and in convenience and online channels. Any formal proposal would require approval under the UK merger regime and could prompt close scrutiny of local competition and pricing effects.
Market participants will monitor retailer trading updates and any formal approaches. If a deal were notified, the Competition and Markets Authority has a 40-working-day initial review window and can open an in-depth probe lasting up to 24 weeks.