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Sainsbury’s and Morrisons held exploratory talks on a potential merger

A proposed deal would have created a supermarket with a 23.6% market share, behind Tesco’s 27.8%.

Reported · Written up by our desk · Trade & Tariffs

Sainsbury’s held exploratory merger talks this year with rival Morrisons, with discussions described as potentially multibillion pounds, according to reports cited by the Guardian Business.

The outlet said the talks were aimed at a combination that would have produced a supermarket with a 23.6% market share, still behind Tesco’s 27.8%.

The Guardian Business also reported that the negotiations were described as exploratory, citing the Financial Times and Sky, and that it is believed the companies are no longer in live discussions.

Morrisons, previously one of the UK’s big four grocers, was bought by US private equity firm Clayton Dubilier & Rice in 2021 and has carried more than £7bn in debt on its balance sheet, while Lidl has since overtaken Morrisons in market share this year, according to the report.

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