The likelihood of the £7.3bn merger between J Sainsbury and Asda hitting competition hurdles has grown after research found that two in five of Asda’s largest stores are a five-minute drive from a Sainsbury’s supermarket.
The proposed deal is due to face close scrutiny by the Competition and Markets Authority, the watchdog, which is likely to analyse how much overlap there is between the two grocery chains.
The planned merger would create Britain’s largest supermarkets group, with a network of 2,800 Sainsbury’s, Asda and Argos stores, overtaking Tesco as the nation’s leading grocer.
The Telegraph reports that the supermarket watchdog has given tentative backing to the mega-merger between Sainsbury’s and Asda, saying bigger retailers are often easier to regulate.
