£13bn Deal Thwarted: Asda and Sainsbury’s Prohibited from Collaborating Until 2019

  • CMA blocks Asda-Sainsbury’s merger
  • Merger worth £13bn
  • Resulted in a 31% share of grocery sector
  • Asda and Sainsbury’s prohibited from working together until July 29, 2019
  • Sainsbury’s incurred costs of £46m after merger was blocked

The Competition and Markets Authority (CMA) has blocked the merger between Asda and Sainsbury’s, stating that it would result in a substantial lessening of competition in local and national markets. The £13bn deal would have given the combined company a 31% share of the grocery sector. Asda and Sainsbury’s are now prohibited from working together until July 29, 2019, with Sainsbury’s incurring costs of £46m after the merger was blocked in April.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the CMA’s decision to block the merger between Asda and Sainsbury’s, the reasons behind it, and the consequences for both companies. It also includes relevant details such as the costs incurred by Sainsbury’s and Asda’s sales slip after the blockage.
Noise Level: 3
Noise Justification: The article provides relevant information about the CMA’s decision to block a merger between Asda and Sainsbury’s and its consequences. It also includes specific details such as the costs incurred by Sainsbury’s and Asda’s sales slip after the blockage. However, it lacks analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The supermarkets’ merger would have impacted local and national grocery markets, online delivered groceries, and retail supply of fuel. Asda and Sainsbury’s incurred costs due to the blocked merger.
Financial Rating Justification: This article discusses a failed merger between two major supermarket chains, which would have significantly affected the grocery sector and impacted financial markets by altering competition in various areas. It also mentions the financial losses incurred by the companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk