MP row over shop merger price vow

Pensions and ‘Mickey Mouse’ figures under fire

THE bosses of Sainsbury’s and Asda were accused by MPs yesterday of talking “baloney” about their £14billion mega-merger.

Politicians attacked chief executive of Sainsbury’s Mike Coupe and Asda’s Roger Burnley for using “Mickey Mouse” figures to justify the proposed deal.

But the pair hit back, claiming the tie-up would allow them to compete against the might of Amazon, plus Aldi and Lidl, and safeguard workers’ pensions.

Sainsbury’s and Asda, Britain’s second and third biggest supermarkets, have vowed to cut prices on everyday products by up to 10%.

The two chains claim much of that will come from ensuring that both get the same best deal from suppliers.

Burnley, who said his total pay last year was 121 times its average worker, said: “The majority will come from a relatively small number of international suppliers.”

But during a fiery hearing of the Commons Environment, Food and Rural Affairs Committee, MPs claimed smaller suppliers would also be hit

Neil Parish, Tory chair of the committee, said: “You are going to be a big beast in the market. You are going to extract more pain.”

Frustrated by Burnley’s answers, he added: “Don’t come here and give us a load of baloney. You can’t come in here and give us nursery rhymes.” Coupe said it was “not unreasonable” to demand better terms from big suppliers. He cited the example of US-owned cereal maker Weetabix which, he said, made “20p in the pound profit”.

It is proposed Asda’s US owner Walmart will be responsible for the chain’s pension scheme. However, the meeting heard concerns about a £974million black hole in the Sainsbury’s fund. Coupe said: “The scheme will be part of a stronger entity.”