Scores of Sainsbury’s and Asda stores may close under merger

J Sainsbury and Asda could have to offload scores of stores to win approval for a £12bn merger that would transform the British supermarket sector. The deal, which would create the UK’s largest grocer, pushing Tesco into second place, has to be approved by the Competition and Markets Authority. The watchdog is likely to order the supermarket chains to sell a large number of their shops to address concerns about them having too much power. Sainsbury’s and Asda operate more than 1,000 stores across the country and their tie-up would create a business that controlled nearly a third of the grocery market. The FT adds that the combination of J Sainsbury and Asda, details of which should be confirmed on Monday, will constitute a revolution in UK retailing – if they can persuade regulators to allow it. The Daily Telegraph understands Walmart, the US retail giant that snapped up Asda in 1999, would emerge as one of the biggest shareholders in the group with a 40% stake if the deal goes ahead. Click here for the full Times article (£) Click here for the full Telegraph article Click here for the full Independent article Click here for the full FT article (£)