Sainsbury’s has confirmed that it is discussing a merger with Asda, the UK division of Walmart.
In a statement on Saturday (28th April), the company said: “J Sainsbury plc (“Sainsbury’s”) notes the speculation concerning a possible combination with Asda Group Limited (“Asda”). Sainsbury’s confirms that it and Walmart Inc are in advanced discussions regarding a combination of the Sainsbury’s and Asda businesses. A further announcement will be made at 7am on Monday 30 April.”
Sainsbury’s has a market share of 15.8 per cent, while Asda’s share is 15.6 per cent. Together they would have a share of 31.4 per cent, putting them ahead of current market leader Tesco which has a share of 27.6 per cent.
Shop workers’ union Usdaw said it was seeking urgent talks with the two retailers.
National officer Joanne McGuinness said: “We will be seeking urgent meetings with the businesses to get more detail on what a possible merger will involve. Our priorities will be to protect our members and ensure any deal between the retailers does not impact on their jobs or incomes.”