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Now that's an Asda Price...2nd May 2018 Corporate
Two of the traditional 'big four' leading supermarkets have agreed a whopping £15bn merger. All eyes have been on Sainsbury's shares this week as they traded up 17% by 12:00 GMT on Monday.
It is predicted that this merger would send a tremor through the supermarket industry leapfrogging Tesco and creating a retail giant that will dominate the industry. Tesco is currently the leading supermarket in the UK with 3,400 stores across the country. Tesco faces being dethroned as their shares have dropped around 3.7%. The merger will be closely watched by the competition watchdog. However, it seems that the recent merger between Tesco and Booker inspired Sainsbury's to go after Asda and could have a combined revenue of approximately £51bn if the deal goes ahead.
There are discussions whether or not there will be thousands of job cuts. It is uncertain at this stage whether they will be rolling back their prices or rolling back their staff. Some analysts have suggested that there will be job losses and stores sold in order to be compliant with regulations. The Competition and Markets authority have said 'the merger is likely to be subject to review.'
We will keep you updated as this progresses as it's certainly an interesting development in the sector.
If you would like to discuss a possible merger or acquisition then please get in touch with a member of our Corporate team today on 0345 872 6666.