The British supermarket chain Sainsbury promises to lower prices by a total of 1 billion pounds in an attempt to still get approval for the takeover of its counterpart Asda. The Competition and Markets Authority (CMA) recently announced that it would be difficult for companies to overcome competition concerns.
Sainsbury’s and Walmart subsidiary Asda announced the merger in April. According to the regulator who is considering the deal, it is not certain even with significant commitments that the acquisition will get the green light.
Sainsbury and Asda do not believe that the consumer could be the victim of the acquisition. Sainsbury anticipates 300 million pounds in price reductions in the first year after the acquisition and another 700 million pounds in the second year.
The merged entity would overthrow Tesco as the largest supermarket in the UK, given its market share. Walmart will hold approximately 42 percent of the merged company. The Americans received nearly £ 3 billion for the deal, which valued Asda at £ 7.3 billion.