Aldi and Lidl to be part of watchdog probe into Sainsbury’s takeover of Asda
The UK’s competition watchdog will be factoring in the role of major rivals and potential threats to suppliers as part of its probe into the planned Sainsbury’s and Asda merger.
The Competition and Markets Authority (CMA) said this morning that as part of its investigation into the J Sainsbury takeover of rival Asda, the “level and impact of competition presented by newer or growing retailers – including Aldi and Lidl – will be considered”
The watchdog said it would also weigh up the impact of such a deal on suppliers and shoppers.
“The CMA will also look at whether the merged company could use its increased buyer power to squeeze suppliers and if this could have a potential knock-on effect for shoppers,” it said.
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Sainsbury’s and Asda have both said that the deal, which would make the combined group the country’s largest grocer, will bring benefits to customers through lower prices.
Stuart McIntosh, chair of the independent inquiry group carrying out the in-depth investigation, said: “Millions of people shop at Asda and Sainsbury’s every week, so it is essential we carry out a thorough investigation into their proposed merger. Our job is to find out whether the merger will result in people paying more or being faced with less choice or a poorer quality shopping experience.”
McIntosh aded: “Today, we are setting out a number of areas that we expect to look at as part of our investigation. We welcome views on the effects of the merger and will carefully consider any evidence that we receive.”