Sainsbury’s, Walmart merger blocked
A U.K. competition regulator has blocked the mutual buyout agreement between Sainbury’s, Walmart and Asda, resulting in the cancellation of the multi-billion dollar transaction.
The proposed 7.3 billion pound ($9.4 billion) takeover of Walmart-owned Asda, agreed upon in April last year, was believed to result in a substantial lessening of competition at both a national and local level, according to CNBC.
“We have concluded that there is no effective way of addressing our concerns, other than to block the merger,” said Stuart McIntosh, chair of the Competition Markets Authority.
The CMA also said the merger would raise prices at the supermarkets' gas stations and lead to longer checkout lines.
To read the CNBC article, click here.