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Sainsbury’s and Morrisons merger talks are now aborted

Reported · Written up by our desk · M&A & Deals

Morrisons and Sainsbury’s entered merger talks that have since been aborted, according to analysis in The Guardian Business. The piece argues that the two supermarket chains likely expected the UK Competition and Markets Authority (CMA) would approve a merger, noting it is “easy to list the arguments” the companies could have made. It points to the combined market shares, saying Sainsbury’s has 15.2% and Morrisons 8.4% based on Worldpanel analysts’ latest figures, and that the total would still be below Tesco’s 27.8% market share.

Morrisons and Sainsbury’s, however, would have faced competitive pressure from Aldi and Lidl, which the article says together represent almost a fifth of the UK grocery market.

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