U.K. regulators have blocked the proposed merger between Asda and Sainsbury's. The Competition and Markets Authority's investigation found the merger would result in increased prices, reductions in the quality and range of products available, and reduced quality of service, such as fewer delivery options, when shopping online.
In making the decision to prohibit the merger, the CMA reviewed a wide range of issues in detail, such as the increased competition presented by discount stores like Lidl and Aldi, and how new or expanding competitors could affect the retail market, including online. The group also reviewed the companies' statement that they would cut some prices, however, analysis of the impact of the deal showed that, overall, the merger would reduce competition in the market and is more likely to lead to price rises than price cuts.
Related: Walmart, Sainsbury's Deal Hits Roadblock; UK Grocery Market Grows at Slow Pace.
from Industry Operations http://bit.ly/2Zz1nd5
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