DEAL DELVING ASDA BE DONE

A £12billion merger between Sainsbury’s and Asda is to be investigated over fears shoppers could be hit with higher prices.

The Competition and Markets Authority confirmed it had launched a probe into the proposed deal, which would see the combined giant leapfrog Tesco to become Britain’s biggest supermarket.

The CMA said the merger could lead to a “substantial lessening of competition in the grocery market”.

It also warned: “Their stores overlap in hundreds of local areas where shoppers could face higher prices or a worse quality of service.”

The move to a “Phase 2” investigation was widely expected given the scale of the deal.

Sainsbury’s boss Mike Coupe says he will cut prices on everyday items such as bread and milk by 10% if the merger goes ahead, partly funded by squeezing bigger suppliers.