Sainsbury’s engaged in exploratory merger negotiations with Morrisons earlier this year, potentially paving the way for one of the most significant consolidations in the UK supermarket sector in recent decades, according to reports.
The proposed deal, described as a multibillion-pound arrangement, would have resulted in a combined entity commanding a 23.6% market share. Despite the scale of the potential merger, the new giant would still have trailed behind Tesco, which holds a leading 27.8% of the market.
Reporting from the Financial Times and Sky indicates that the two retailers held preliminary discussions but are believed to no longer be in active talks regarding a combination.
A 23.6% share is huge, but Tesco still wins. Did they really think they could outcompete the giant?
Does anyone else miss the old independent grocers? Consolidation just leaves us with fewer choices at the till.
Good riddance. Tesco already dominates; a Sainsbury’s-Morrisons combo would have made things worse for competition.
Shocking! I had no idea talks were happening at all. The supermarket landscape is changing so fast lately.
I wonder if this merger would have actually lowered prices for shoppers, or just created a bigger monopoly.