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You can find the current article at its original source at https://www.theguardian.com/business/2018/aug/23/competition-watchdog-to-scrutinise-merger-of-sainsburys-and-asda
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| Competition watchdog to scrutinise merger of Sainsbury's and Asda | Competition watchdog to scrutinise merger of Sainsbury's and Asda |
| (35 minutes later) | |
| The competition watchdog has launched an investigation into the proposed £12bn merger between Sainsbury’s and Asda. | The competition watchdog has launched an investigation into the proposed £12bn merger between Sainsbury’s and Asda. |
| A phase 1 investigation will assess how the deal, which was announced in April, could affect competition for UK shoppers, the Competition and Markets Authority (CMA) confirmed on Thursday. It will consider whether the tie-up could lead to less choice, higher prices or poorer services. | A phase 1 investigation will assess how the deal, which was announced in April, could affect competition for UK shoppers, the Competition and Markets Authority (CMA) confirmed on Thursday. It will consider whether the tie-up could lead to less choice, higher prices or poorer services. |
| It will also look at whether the merged company could use its increased buying power to squeeze suppliers and the potential knock-on effects for shoppers. | It will also look at whether the merged company could use its increased buying power to squeeze suppliers and the potential knock-on effects for shoppers. |
| Sainsbury’s and Asda have said that suppliers will bear the brunt of a pledge to reduce the price of everyday products after their merger. | |
| Andrea Coscelli, the chief executive of the CMA, said: “About £190bn is spent each year on food and groceries in the UK, so it’s vital to find out if the millions of people who shop in supermarkets could lose out as a result of this deal. | |
| “We will carry out a thorough investigation to find out if this merger could lead to higher prices or a worse quality of service for shoppers and will not allow it to go ahead unless any concerns we find are fully dealt with.” | “We will carry out a thorough investigation to find out if this merger could lead to higher prices or a worse quality of service for shoppers and will not allow it to go ahead unless any concerns we find are fully dealt with.” |
| It is expected that scores of stores will have to be offloaded as part of the competition review. | It is expected that scores of stores will have to be offloaded as part of the competition review. |
| Sainsbury’s and Asda have asked the CMA to move to the in-depth phase 2 part of the investigation through a fast-track process. | Sainsbury’s and Asda have asked the CMA to move to the in-depth phase 2 part of the investigation through a fast-track process. |
| In most cases a full phase 1 investigation is needed to determine whether a deal can be cleared or further scrutiny is required but merging companies can ask the CMA to move more quickly to the second phase. | |
| The CMA said it expected to agree to the request unless it receives valid objections. | The CMA said it expected to agree to the request unless it receives valid objections. |
| Competition and Markets Authority | Competition and Markets Authority |
| J Sainsbury | J Sainsbury |
| Asda | |
| Retail industry | Retail industry |
| Supermarkets | Supermarkets |
| Regulators | Regulators |
| news | news |
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