CMA refers Sainsbury's-Asda merger to Phase-2 investigation
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Sainsbury's merger with Asda has been referred to an in-depth probe by competition regulators with a deadline of March next year.
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The Competition and Markets Authority confirmed that the deal raises sufficient concerns to be referred for a more in-depth review, including on issues relating to fuel, general merchandise and increased ‘buyer power’ over suppliers.
Sainsbury and Asda's owner Walmart agreed the deal in April, with the US retail behemoth holding a 42% equity stake in the enlarged UK group.
Each of the two supermarket chains account for just over 15% of the market, with the combination taking them ahead of current leader Tesco's 27% market share, according to this week's industry data.
Sainsbury's could be forced to sell around 300 stores all across the UK if its merger with Asda is approved by regulators, some observers have suggested, due to local competition concerns.