THE competition watchdog will take into account the rapid growth of Aldi and Lidl when deciding whether to approve the £12 billion mega-merger between Sainsbury’s and Asda.
It was feared last month that Aldi and Lidl would not be considered in the Competition and Market Authority’s (CMA) investigation into the deal, after an initial analysis excluded the discounter chains as well as convenience stores.
But its latest update, the CMA said it has broadened its scope to include the German discounters as well as non-grocery competitors such as B&M, Amazon, and John Lewis & Partners.
READ MORE: Retail sales in Scotland fall amid economic pressures
The CMA will now assess which other businesses can be considered competitors to Sainsbury’s and Asda.
Provisional findings will be presented early next year, while a final decision must be made by March 5, 2019.
Stuart McIntosh, chairman of the CMA’s inquiry group, said: “Millions of people shop at Asda and Sainsbury’s every week, so it is essential we carry out a thorough investigation into their proposed merger.
“Our job is to find out whether the merger will result in people paying more or being faced with less choice or a poorer quality shopping experience.
In their own submission to the CMA, Sainsbury’s and Asda said that Aldi and Lidl “have had the most profound impact” on the grocery market over the past decade.
The duo also pointed to the launch of Jack’s, Tesco’s new convenience store outlet.
The firms also described their marriage as “pro-competitive”, arguing that it will help enable
them respond better to changed consumer behaviour.
The CMA’s investigation will also consider whether the tie-up could lead to less choice, higher prices or poorer quality services.
It will look at whether the merged company could use its increased buying power to squeeze suppliers and whether this could have potential knock-on effects for shoppers.
Sainsbury’s and Asda have gone on record saying that suppliers will bear the brunt of a pledge to bring down the price of everyday products following their union.
It is also expected that scores of stores will have to be offloaded as part of the competition review.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel