Asda-Sainsbury merger review demanded by UK's shadow business secretary over monopoly concerns
Asda’s proposed merger with rival supermarket chain J Sainsbury [LON:SBRY] should be scrutinised by the Competition and Markets Authority (CMA) on an urgent basis, the UK’s shadow business secretary Rebecca Long-Bailey has urged. FT.com reported that Long-Bailey is anxious about the impact the deal may have on suppliers as she said it threatens to create a monopoly.
Customers of the supermarkets will also suffer as prices increase and employees may be fearful of store closures and redundancies if the deal proceeds without “adequate” scrutiny and oversight, Long-Bailey said.
The CMA is thought likely to demand a merged Asda-Sainsbury group dispose of a significant number of shops to protect competition in the sector, the item reported.
Asda is owned by the US retailer Walmart [NYSE:WMT].
Link to original source