Concern over merger impact

The chief executives of Sainsbury’s and Asda have been summoned before MPs to answer questions on how the supermarkets’ proposed £12 billion merger will impact farmers, suppliers and consumers.

Sainsbury’s Mike Coupe and Asda’s Roger Burnley will appear before the environment, food and rural affairs committee on June 20, with the treatment of suppliers to be a focus of the grilling.

Neil Parish MP, chairman of the committee, said: “Grocery retailers do not have a great record of treating their suppliers well, and some of them are cautious about the proposed Sainsbury’s and Asda merger.

“My committee is holding this session to investigate how the biggest potential shake-up of the grocery market in recent years could affect British farmers and suppliers, as well as consumers.”

A merger between the duo, the UK’s number two and three supermarkets, will create a supermarket titan bigger than Tesco with revenues of £51bn and a network of 2,800 Sainsbury’s, Asda and Argos stores.

They have pledged to cut prices on everyday products by around 10% after the deal.

Sainsbury’s Mike Coupe will appear before MPs.