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Sainsbury’s and ASDA undergo a multi-billion pound merger


The merger will mean Sainsbury’s and ASDA combined will become the UK’s largest retailer, overtaking the current leader Tesco

Sainsbury’s are currently the second largest supermarket in the UK, with ASDA closely trailing in third place, but together they will generate sales in the region of £51 billion, making them the dominant UK retailer.

Even though Sainsbury’s and ASDA will continue to run as individual brands, it is expected that, once financially merged, the combined supermarket will offer around a 10% price cut on products.

Analysts have forecast that the proposed merger is expected to trigger a major competition amongst other major retailers, and is said to be the biggest shake-up in the market since Morrison bought Safeway in 2003.

Sainsbury’s CEO Mike Coupe, who plans to lead the merged business, has said that the deal was a “transformational opportunity to create a new force in UK retail, which will be more competitive and give customers more of what they want now and in the future.” He insisted the merger would be “a great deal for everyone”, with benefits for customers, staff, suppliers and shareholders.

There are currently no plans for store closures as a result of creating this group, which will comprise 2,800 stores with sales of £51 billion.

Image source: Retail Gazette.

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