UK’s £13bn blockbuster supermarket merger leapfrogs Tesco
Transformational deal will create a new force in retail, which will be more competitive and give customers more of what they want now and in the future
London — The UK’s second-and third-biggest supermarket chains Sainsbury’s and Walmart-owned Asda have agreed to merge, the pair said on Monday, creating a £13bn retail king that would leapfrog Tesco. The blockbuster deal comes as the UK retail sector faces squeezed profit margins due to fierce competition from German-owned discounters Aldi and Lidl — as well as online players, such as like US titan Amazon. The news sent Sainsbury’s share price spiking more than 20% in initial deals on the London stock market, while Tesco sank almost 4% on fears the group could lose its retail crown. "Sainsbury’s and Walmart are pleased to announce that they have agreed terms in relation to a proposed combination of Sainsbury’s and Asda Group, a wholly owned subsidiary of Walmart, to create an enlarged business," they said after confirming advanced talks at the weekend. The transaction values Asda at £7.3bn. Sainsbury’s stock market capitalisation stood at £5.9bn at the close of business on Friday. W...
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