Sainsbury's, Asda End Merger Plan

By WSJ City

J Sainsbury and Asda Group threw in the towel on their planned merger after the UK Competition and Markets Authority blocked it nearly a year after the two grocers first agreed to combine.

KEY FACTS

   -- The regulator said the merger would lead to a "substantial lessening of 
      competition in a number of markets in the UK." 
 
   -- The companies are the the UK's second- and third-largest grocers. 
 
   -- Asda is Walmart's arm in the UK. 
 
   -- Sainsbury said the ruling ignores the "dynamic and highly competitive" 
      nature of the UK grocery market. 
 
   -- Sainsbury and Asda put forward a proposal in March to sell up to 150 
      stores and a number of gas stations.

The Backstory

A year ago, Walmart said it would sell Asda to rival Sainsbury. The move was part of a broader shift to form joint ventures in competitive overseas markets. Asda has been one of Walmart's most profitable foreign forays since it bought the chain in 1999, but growth has slowed more recently amid intense competition in the UK.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

April 25, 2019 09:01 ET (13:01 GMT)

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