Grocery mega-merger sparks CMA concerns

Sainsbury’s and Asda have been warned that their proposed merger could threaten competition in more than 460 areas.

The initial findings from the Competition and Markets Authority (CMA) raise the possibility that the retail giants may have to dispose of hundreds of stores.

The findings of the CMA’S socalled phase one inquiry into the deal found potential competition issues for stores in 463 local areas. It raised concerns over 225 Sainsbury’s stores and 238 Asda stores.

A spokesman for Sainsbury’s and Asda welcomed the start of an in-depth inquiry and stressed recent changes to the shape of the supermarket sector.

He said: “The grocery market has changed significantly in the last decade and is more competitive than ever, with the rise of discount formats, online grocery and food delivery businesses. We look forward to working with the CMA on the Phase 2 inquiry.”