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Tie-up doubt over fears of higher prices

THE Sainsbury’s and Asda merger was last night thrown into doubt after a watchdog ruled it would hit shoppers with higher prices.

Competition and Market Authority chiefs also warned the proposed £12billion tie-up could mean worse stores and products.

It said the only way it would allow the deal was for the pair to sell a large number of shops, or one of the brands.

Sainsbury’s chief executive Mike Coupe branded the CMA’S provisional finding “totally outrageous”.

But the watchdog’s independent inquiry group chair Stuart Mcintosh said: “These are two of the biggest supermarkets in the UK, with millions purchasing their products every day.

“We have provisionally found that, should the two merge, shoppers could face higher prices, reduced quality and choice, and a poorer overall shopping experience.” GMB union general secretary

ANDREW Tyrie was the scourge of bankers when grilling bigwigs as head of the powerful Commons Treasury Select Committee.

He was made chairman of the Competition and Market Authority in April 2018 and the retired MP has arrived with a bang.

Sainsbury’s cried foul yesterday, claiming the watchdog hadn’t factored in the threat Tim Roache warned that the merger could “see thousands of jobs at risk in everything from stores and distribution, to head office”.

Sainsbury’s is the UK’S second biggest store and Asda the third. Together they would leapfrog Tesco to become the from Aldi and Lidl. But a merged Asda and Sainsbury’s, plus Tesco, would mean two firms dominating nearly 60% of the market.

If the deal fails, all eyes will be on who might buy Asda, with private equity and even biggest, with a near 30% market share. The pair, which would be 42% owned by US giant Walmart, had pledged to negotiate big savings from suppliers to cut prices.

Sainsbury’s and Asda said of the CMA ruling: “These findings misunderstand how people shop today and the intensity of competition in the grocery market.

“The CMA has moved the goalposts and its analysis is inconsistent with comparable cases.”

But analysts warned the merger deal was now “effectively dead in the water”. Amazon mentioned. So, too, is what happens to Sainsbury’s boss Mike Coupe.

The jovial CEO was caught singing We’re In The Money from 42nd Street before an ITV interview about the deal. He apologised later.

Experts warn that he has been just as naive with this deal and could, in fact, be heading for the check-out himself.