Sainsbury’s and Morrisons ‘held talks this year’ on multibillion-pound merger
Deal would have created a supermarket with a market share of 23.6%, still well behind Tesco’s 27.8% Sainsbury’s held merger talks with rival Morrisons this year to discuss a multibillion-pound deal that would have been the biggest shake-up for UK supermarkets in decades, according to reports. The two companies held exploratory negotiations, according to the Financial Times and Sky. It is believed…
Sainsbury's and Morrisons reportedly held exploratory talks in 2021 regarding a potential multibillion-pound merger, aiming to create a supermarket with a market share of 23.6%. This would have been the largest shake-up in the UK supermarket industry in decades, according to reports. The deal would have put Sainsbury's, which currently holds 15.2% market share, well behind Tesco's 27.8% market share.
The last attempt to merge two of the big four supermarkets occurred in 2019, but was blocked by the Competition and Markets Authority due to concerns over reduced competition and higher prices for customers. Morrisons, once a member of the big four alongside Sainsbury's, Tesco, and Asda, was acquired by Clayton Dubilier & Rice in 2021, which loaded the company with over £7 billion in debt.
Since then, Morrisons has struggled to grow as quickly as its rivals, with Lidl overtaking it in market share. While Clayton Dubilier & Rice remains open to a tie-up between Morrisons and another major supermarket, it is believed that Sainsbury's and Morrisons are no longer in live discussions.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
