Sainsbury’s confirms Asda merger talks

Sainsbury’s has confirmed media reports that it is in talks with Walmart about a £10 billion merger that would see it takeover Asda.

It tweeted this afternoon: ‘J Sainsbury plc notes the speculation concerning a possible combination with Asda Group Ltd. Sainsbury's confirms that it & Walmart Inc. are in advanced discussions regarding a combination of the Sainsbury's & Asda businesses. A further announcement will be made 7am Monday.’

The combined group would comprise 2,800 stores and would represent a 22% share of the UK's food and grocery market, well above that of the current leader, Tesco, which has 17.7%. No details as of yet as to how a deal would work, whether Asda stores would be brought under the Sainsbury’s banner and if there would be issues around securing approval from the Competition and Markets Authority.

UPDATE: The GMB union has said that its first priority is to safeguard the job of every Asda member, both in stores and in distribution. "We are demanding an urgent meeting with Asda to get the answers and assurances our members need and deserve," comments Tim Roache, GMB General Secretary. 

“We will be making sure the voices of supermarket workers are not lost amidst all the talk of mergers and acquisitions. We should never forget these companies’ empires are built upon the hard work of their employees. Rest assured we will be exploring every available legal avenue to protect our members’ jobs."

Check back on Monday morning for further updates.

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