Watchdog warns disposals necessary for Asda-Sainsbury's merger

Sainsburys south woodford

The UK’s competition watchdog has said Sainsbury’s and Asda may have to offload a ‘significant number of stores’ if the proposed merger is to be approved.

In a provisional verdict on the merger, the Competition and Markets Authority said stores and other assets, potentially including one of the Sainsbury’s or Asda brands, may have to be divested in order to ‘recreate the competitive rivalry lost through the merger’.

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