Sainsbury's-Asda deal blocked by Competition and Markets Authority

Sainsbury's-Asda deal blocked by Competition and Markets Authority

The proposal for Sainsbury’s and Asda to combine forces in a retail merger has been blocked by the Competition and Markets Authority (CMA). 

The regulator ruled that the merger would reduce competition, and could lead to higher prices and longer queues.

There had been concerns in the music and entertainment sector about the downward pressure on prices from any merger. According to ERA, supermarkets had a 23.6% share of the albums market last year. 

Sainsbury’s began stocking vinyl in 2016 and launched it own range of compilations.

The merger would have created a network of 2,800 Asda, Sainsbury’s and Argos stores. Sainsbury’s and Asda had promised to sell up to 150 supermarkets to allow the deal to proceed.

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