MPs fear job losses over £12bn retail merger

MPS ARE demanding answers after it emerged that the potential £12bn merger between Leedsbased Asda and Sainsbury’s could result in the closure of about 75 stores, placing thousands of jobs at risk.

Shadow Business Secretary Rebecca Long-Bailey warned a “duopoly” of the big supermarkets would emerge, which could be at the expense of manufacturers, suppliers and farmers.

Meanwhile both Leeds West MP Rachel Reeves and Leeds Central MP Hilary Benn demanded assurances from Government that Asda’s Leeds headquarters and its 2,000 or so staff would be protected.

Bosses at both Asda and Sainsbury’s had initially ruled out store closures but later conceded that competition watchdog the CMA could require them to dispose of stores in order to gain approval for the deal, which one analyst predicted could run to 75 stores.

Under the proposed merger, both firms will keep their separate brands but operate as a subsidiary of Asda parent company Walmart, which will have a 42 per cent stake in the business.

Asda chief executive Roger Burnley remained adamant that there we no planned changes to the firm’s Asda House headquarters in Leeds. However, Ms Reeves said: “I think that people working at head office in Asda will be incredibly concerned about their future.”

Business Minister Andrew Griffiths told MPs that he and Business Secretary Greg Clark were monitoring the deal closely.

In-depth reports: Business Tuesday.