Tesco and Sainsbury see talk of GBP 26bn merger
The listed British supermarket chains Tesco and Sainsbury were linked yesterday by merger rumours, The Daily Mail reported. The market report described the deal chatter as “very vague”, and was skeptical of any truth in the rumoured GBP 26bn (USD 43bn) merger.
The report noted that both retailers are facing increasingly strong competition from the German-owned bargain supermarkets Lidl and Aldi.
Sainsbury is 26% owned by Qatar, which is believed to be more likely to attempt its own buyout of the chain than back a deal with Tesco, the item stated. It also noted that Tesco has a newly appointed chief executive, Dave Lewis, who is reportedly anxious to prove himself.
Source Daily Mail