Store chiefs to be grilled on merger

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

Sainsbury’s Mike Coupe and Asda’s Roger Burnley will appear before the Commons environment, food and rural affairs committee on 20 June.

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

The chains have pledged to cut prices on everyday products by around 10 per cent after the deal. But fears have been expressed that suppliers could get squeezed, with the tie-up giving the merged entity increased buying power.

Neil Parish MP, chairman of the Commons business committee wrote to the competition watchdog, urging it to consider “market dominance” and whether the deal will create “local monopolies”.

A spokeswoman for Sainsbury’s said: “A merger would mean lower prices and a reduced cost of living for customers across the UK.”